Tue, Jul 29, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Man Group sees $700m Q1 inflows as acquisition of GLG wins back clients

Wednesday, March 30, 2011

Peter Clarke
Opalesque Industry Update – London-based hedge fund operator Man Group Plc., generated approximately $700m in net inflows during the first quarter of the year, reflecting the firm’s first positive quarterly inflow since 2008. In a statement released by the company on Tuesday, the firm credited the acquisition of GLG with stopping the exodus of clients and at the same time “counterbalancing a negative period for AHL.”

The positive performance was also driven by the firm’s recovery after the initial shock of the Japanese earthquake and tsunami which saw markets fall sharply.

At the same time, Man also committed to pursue diversification following the sale of its stake in BlueCrest and the purchase of the remaining 50% of Ore Hill.

A separate press release by the hedge fund firm said it had completed a definitive agreement to take 100% ownership of Ore Hill Partners LLC and Ore Hill Partners Capital Management LLC, a New York-based hedge fund which manages a series of hedge funds with $800m in funds under management (FuM). Ore Hill manages a $1.1bn structured product.

The acquisition of Ore Hill cements Man’s diversification focus and is expected to further boost the firm’s earnings this year. Man bought a 50% stake in Ore Hill in 2008. It added that the complete ownership of Ore Hill “is in line with its strategic focus on internal investment management capabilities, and continues the build out of single strategies on the GLG platform.”

Media reports indicated that Man Group’s deal with GLG reduced its dependence on BlueCrest, specifically on its managed-futures business. Last week, Man Group sold its 25.5% stake in BlueCrest for $633m which earned Man an estimated $250m after buying the firm at $383m in 2003.

Peter Clarke, Chief Executive of Man, commented, “In the course of our 2011 financial year, we have fundamentally reshaped our business and delivered positive performance across a comprehensive range of liquid alternative investment styles. We have made excellent progress with the integration of GLG, sold our stake in BlueCrest to focus our resources on in-house capabilities, secured a major mandate win for our re-focused Multi-Manager business and returned to positive flows.”

Clarke added that the markets started the year on a good note with positive outlook for growth and recovery. However, the earthquake in Japan this March decreased risk appetite and increased volatility in markets.

“Recent market events may affect private investor demand in the short term. However, the work we have done this year to expand the range of investment styles and solutions we offer our investors, coupled with strong performance, broad distribution and a sound financial base, continue to position us well to meet investor demand globally in the coming quarters,” the CEO added.

The group reported a slight increase in FuM at $69bn as at end Mar-11 from $68.6bn posted as at end Dec-10. The figure was up 75% compared to the $39.4bn recorded a year ago.

Pre-tax profit was placed at $280m compared to last year’s $541m or down by 52%.
- Komfie Manalo

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing
  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Hedge fund manager Winton Capital making headway with long-only strategy[more]

    From PIonline.com: North American investors are helping Winton Capital Management Ltd. make progress — albeit slowly — toward its founder's goal of becoming a $100 billion company. The firm's ticket to quadrupling its assets under management is unlikely to be one of its scientifically designed manag

  2. Opalesque Roundtable: Success in hedge fund marketing not linked to performance, but investor appetite[more]

    Komfie Manalo, Opalesque Asia: Success in marketing a fund is not linked to the performance, but to investor appetite, to the way you can market the fund, and to how much time you can spend to raise assets, said Antoine Rolland, the CEO of incubator and seeding firm

  3. Opalesque Radio: Now is a good time to buy protection cheaply in the options market[more]

    Benedicte Gravrand, Opalesque Geneva: Investors are showing an increased interest in risk parity funds and strategies, Opalesque reported last year. Risk parity strategies have the

  4. The Big Picture: Charlemagne Capital smoothes risk out of frontier market investing with portfolio approach[more]

    Benedicte Gravrand, Opalesque Geneva: Opalesque recently talked to one of the portfolio managers of the Oaks funds, which are emerging and frontier market hedge funds focusing on equity long/short with a directional approach. They are run by

  5. Winton’s low-cost equities fund tops $1bn for first time[more]

    From FT.com: Winton, the London-based hedge fund, has increased the assets in its low-cost equities fund to more than $1bn for the first time in a sign that traditional stock managers may come under increasing pressure from computer-driven rivals. Winton, which manages about $25bn in total ass