GLG Partners yesterday announced that it will temporarily stop paying a quarterly dividend.
“We have decided at this time that it is prudent to retain capital rather than continue paying a regular quarterly dividend. We see tremendous value in the added flexibility of retaining cash in the current environment,” Noam Gottesman, chairman and co-CEO, said in a news release.
The hedge fund manager’s board of directors could re-establish the practice or pay a special dividend when warranted, the release added.
Mr. Gottesman noted that the firm recently announced that it will acquire Societe Generale Asset Management UK and that the firm’s management is looking for additional acquisitions in 2009 to “grow and broaden our business as we move into 2009.”
The market reacted positively to GLG’s decision to stockpile cash, raising the share price 11% in intraday trading to close at $2.23 per share, up from Monday‘s $2.01 closing price. GLG managed $17 billion as of Sept. 30.
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