Fri, Apr 25, 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   |   
Banner
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. Opalesque Exclusive: Rainwater and Blue Sky - an Australian water fund emerges[more]

    Bailey McCann, Opalesque New York: Financial reporters often tout new funds and investments as uncorrelated investments, but few can say they are uncorrelated to everything but weather. Enter Blue Sky Alternative's water fund which invests in the permanent rights to Australia's water. Sev

  2. Regulatory – Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades, Alternative funds to get SEC test for leverage, liquidity[more]

    Expect greater SEC scrutiny of hedge funds that share information or collaborate in advance of their trades From Thelawyer.com: A recent Wall Street Journal article — ‘Activist investors often leak their plans to a favoured few’ — focused attention on ‘activist’ investors and stock analy

  3. …And Finally – This week's least competent criminal is Austrian[more]

    From ABCnews.go.com: A German sought by authorities for alleged fraud has been arrested in Austria — after dropping into a police station to ask officers whether he was under investigation. Police in Salzburg said the 59-year-old man walked into a police station in the city on Friday night. Sp

  4. Investing – Hedge funds find pitfalls along with profits in real estate ventures, Marcato Capital Management makes new bet on Dillard’s[more]

    Hedge funds find pitfalls along with profits in real estate ventures From Law360.com: Hedge funds have joined the rush to real estate deals and development in recent months to close the financing gap left by tightening bank standards, but attorneys say many aren't prepared for the disclo

  5. Agecroft Partners estimates 90% of hedge funds using social media[more]

    The use of social media has increased significantly within the hedge fund industry over the past couple of years. Social media is broadly used by investors as part of their due diligence process on hedge funds, by service providers in their sales efforts to hedge funds, and by hedge funds to enhance