GLG and Lehman - a lucky break? Friday, September 19, 2008
Image by Getty Images via DaylifeIn seeking to distance itself from Lehman Brothers, with whom it was closely connected, GLG has announced that last week it transferred substantially all of the positions of its funds still with Lehman to other prime brokers. It claimed that the majority of these transfers have already settled and the firm expect the remainder to settle shortly. It says it believes the funds' residual exposure to Lehman will not be material.
Gosh - the timing of those transfers is remarkably lucky. A few more days and they would have been caught up in the mayhem, probably losing access to those assets.
GLG also confirmed that all its funds have at least two prime brokers and in nearly all cases, at least one prime broker is a commercial bank, a point I had been making in a recent post here.