GLG: Convicted Crooks Restate Results

GLG (GLG), the London-based hedge fund manager that achieved the unique distinction of being sanctioned by regulators in three countries—the US, the UK and France—before listing on the New York Stock Exchange on Nov. 5 2007, didn’t get the ‘Mind the GAAP’ warning:

The total effect of the restatement for the error on the Company’s combined and consolidated statements of operations was:

[blah blah blah]

• a reduction in net income attributable to common stockholders of $403.1 million and $201.5 million for the years ended December 31, 2007 and 2006, respectively; and
• a net loss per share of $2.11 for the year ended December 31, 2007 and net income per share of $1.16 for the year ended December 31, 2006.

[blah blah blah]

Far be it from me to point out that $403.1 million is in the general neighborhood of the restatement that sent Scammy (20 years), Dan (20 years) and Jimmy (51 months) up the bayou without a paddle. While a similar outcome is probably unlikely here, it’s hard to see why anybody would want to invest in either the stock of, or funds managed by, a company congenitally incapable of abiding by either regulatory or accounting rules.

Tug o’ the forelock: Dealbreaker

GLG Partners Inc
SEC Form 8K
Apr. 15 2008

Investor presentation