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New GLG Retail Fund to Steer Clear of Financials

Hedge fund firm GLG Partners’ recently-launched European Equity Alternative Fund will steer clear of financial services, Pierre Lagrange, partner and co-founder at GLG told CNBC on Wednesday.

Traders work in the ten-year U.S. Treasury Note options pit at the Chicago Board of Trade in Chicago, Illinois, U.S.
Daniel Acker | Bloomberg | Getty Images
Traders work in the ten-year U.S. Treasury Note options pit at the Chicago Board of Trade in Chicago, Illinois, U.S.

The firm will employ a long-short strategy, which it says will help retail investors achieve capital growth as well as capital protection.

“We’re coming out with a retail version of a strategy we’ve had for more than 10 years,” Lagrange said.

“We can’t make money at all times obviously. But there’s a combination of focusing on losing less when we’re wrong and continue to look for opportunities in all kinds of markets,” he said.

Financial services were off limits for the time being however, he said.

“It’s all about limiting the risk where we get involved. Right now in financials, it’s crazy,” Lagrange told CNBC.

“It’s a very tense situation. We should let the politicians do the job they do…it’s very, very difficult to interpret,” he added. “Being short Italian banks right now is unmanageable from a risk point of view.”

He said he saw investment opportunities in mainland Europe because the region has lived for decades with relatively weak domestic demand and has always had to find economic growth and life outside its shores.

“Even though there’s a lot of difficulty at the sovereign level and at the financial level, there are a lot of other businesses which are doing quite well," he said.

"What's beautiful in Europe is that it’s such a wide array of macroeconomic factors affecting stocks," he said, meaning investors could avoid sectors that are too troublesome.

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