Enter multiple symbols separated by commas

Another Hedge Fund Veteran Throws in Towel

Greg Coffey, an aggressive trader once seen as the eventual heir of the $15 billion hedge-fund Moore Capital Management, is instead the latest money manager to throw in the towel and retire.

Coffey, 41, has liquidated the primary fund he managed, GC Moore Emerging Macro, and returned some $100 million to investors, say people familiar with the matter. He has passed the reins of two other funds he managed to colleagues at Moore, the fund company he joined in 2008, these people said. In a letter to investors, Coffey attributed his departure to the demands of his growing family, according to someone familiar with the letter, saying that he could no longer commit to trading with the same intensity he once did.

Although Coffey's primary fund was down roughly 2 percent on the year, the exact timing of his exit was ironic, given that it had risen 9 percent for the month of September, said the people familiar with the matter. A spokesman for Coffey said he was not available for an interview.

Coffey, an Australia native, joined Moore amid much fanfare in 2008. Considered a wunderkind on the London hedge-fund scene, he had reportedly generated returns of 60 percent in 2006 and 51 percent in 2007 at his prior firm, the London money manager GLG Partners, where he managed billions of dollars. Upon hiring Coffey, Louis Bacon, the secretive founder and chief executive of Moore, rewarded him with a significant title – co-chief investment officer of the European business. (Read More: A Secretive Hedge Fund Legend Prepares to Surface )

It was a signal moment for Bacon, himself an actively engaged strategist and trader who had never before telegraphed a clear succession plan. When Bacon's longtime lieutenant Christopher Pia left Moore late in 2008 amid a regulatory probe into metals trading, Coffey was increasingly regarded as the heir apparent.

But he never delivered on the returns, say people familiar with Coffey's results, and former Moore employees say Coffey's brash personality at times rankled colleagues.

Late last year, Coffey undertook a partial spin-out of Moore, renaming his main fund GC Moore Emerging Macro to differentiate it as a joint venture with the fund company. Although he still had capital from Moore, he also began taking in third-party investments. He remained a Moore employee. (Read More: For Hedge Funds, a Half Percent Is the New Move )

Some hedge-fund investors and Moore insiders regarded the move as a push out the door for Coffey, but Bacon was adamant in his support for the trader. In a letter distributed to Moore investors last November, Bacon called Coffey "steadfast" in his "efforts…to grow and succeed in their business at Moore." He also noted that "turbulent markets" had been a challenge to navigate. (Read More: Delivering Alpha 2012 )

In his own letter to investors this week, Coffey expressed a desire to spend more time with his wife, children, and his home country, Australia.

-By CNBC's Kate Kelly

Delivering Alpha 2012 Advisory Board

  • Afsaneh Mashayekhi Beschloss, President and CEO, The Rock Greek Group

    After a long and successful career on Wall Street, Schloss now works for New York City, where he is deputy comptroller for asset management and chief investment officer for the New York City Retirement System.

  • Ashbel Williams, Executive Director and Chief Investment Officer, Florida State Board of Administration (SBA)

    Williams, executive director and CIO of the Florida State Board of Administration, has spent much of his career in state government, but he's also worked in the hedge fund business in New York.   

  • Jennifer Vaccaro, Director of Institutional Sales, Investec Asset Management

    Vaccaro is director of institutional sales at Investec Asset Management, overseeing new business development in the North America institutional market. She has held senior sales positions at several other firms.

Delivering Alpha 2012 Video

  • Return of Risk

    Signs that investors are moving out of defensive names like Wal-Mart and Exxon-Mobil and into more risky areas like specialty retail, with David Kotok, Cumberland Advisors and Michael Farr, Farr, Miller & Washington

  • American - US Airways Merger: Bad For The Consumer?

    The American Antitrust Institute says that less competition in the airline industry would produce higher fares. Diana Moss, American Antitrust Institute, and Henry Harteveldt, Atmosphere Research Group, discuss.

  • Delivering Alpha 2012: Preet Bharara

    U.S. Attorney for the Southern District of New York Preet Bharara is interviewed by Jim Cramer at the "Delivering Alpha" conference presented by CNBC and Institutional Investor on July 18, 2012 in New York City. This is an unedited video of the complete event.

Delivering Alpha

  • Delivering Alpha unfiltered: Alpha Drivers

    Complete video of Becky Quick's discussion with York Capital's Jamie Dinan where he shares his best investment advice and where he sees opportunities for growth.

  • Delivering Alpha unfiltered: Alpha All-Stars

    Complete video of Jim Cramer's conversation with two all-stars of the Delivering Alpha stage, Bill Ackman and Nelson Peltz, where they discuss a variety of investment topics.

  • Delivering Alpha unfiltered: Global Opportunity

    Complete video of Andrew Ross Sorkin's panel on how to navigate the wide array of global investment challenges that investors face featuring Chris Ailman, Mary Callahan Erdoes, Eric Mindich and Richard Perry.