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Business News

Profit rises at hedge fund Moore Capital despite the departure of the Wizard of Oz Greg Coffey

Moore Capital, the hedge fund run by US billionaire Louis Bacon, increased profit at its London office last year despite parting ways with star money manager Greg Coffey.

The unit made a profit of £32.2m in 2012, according to documents filed at Companies House, up from £31.6m the year before. Revenue was £95m compared to £76.6m in 2011.

The partnership at Moore Capital Europe includes Mr Bacon, who is one of the industry's best-known figures. He founded Moore Capital in 1989 and has donated money to the Tory Party in the past.

It also included Mr Coffey until last October, when he shocked the City by resigning. The Australian, known as the Wizard of Oz to his legions of admirers, made his name at GLG, where he reportedly turned down a $250m (£157m) "golden handcuffs" deal to join Moore Capital following a chance meeting with Mr Bacon.

Mr Coffey had a reputation as one of the industry's best performers, although his returns are said to have dipped towards the end of his time at the company.

He has not returned to the fund-management world.

According to reports, Mr Coffey once oversaw a portfolio worth several billions of dollars at Moore, although investor outflows saw these funds diminish to just a "few hundred million". Rumours at the time of his departure circulated that he had fallen out with Mr Bacon, who once described Mr Coffey as "one of the most-impressive traders in the world".

Sources close to Mr Coffey have played this down and said that he wanted to spend more time with his family.