Hedge Fund News writes that London-based hedge fund GLG Partners is expected to lose $4 billion in assets when star portfolio manager Greg Coffey leaves.

Coffey resigned his positions on April 14; during his time at GLG Partners, he managed the GLG Emerging Markets Fund, the GLG Emerging Markets Special Situations Fund, the GLG Emerging Currency and Fixed Income Fund and the GLG Emerging Equity Fund.

Coffey is expected to remain with the firm until October of this year and expects to participate in the succession process. He is expected to forfeit all of his unvested shares and unvested cash awarded to him under GLG’s equity participation.

Coffey managed 7 billion of GLG’s total 24 billion AUM with a 51% gain last year, following a 62% gain in 2006. (Though his fund has dropped 5.5% thus far this year). By some estimates, he generated 60% of GLG’s performance fees last year according to Alpha magazine, earning him $300 million.

Following this announcement, the firm’s share price dropped 2.2% to USD8.84.