Man Group – Largest Hedge Fund Manager

The Man Group is world’s largest public hedge fund manager which provides range of funds for institutional and private investors globally. Hedge fund manager has about $71 billion AUM and employs around 1,700 people.

Man Group was founded in 1783, by a barrel maker, James Man. The following year the company secured the contract to supply the Royal Navy with the rum. In 1860 Edward Desborough Man and Fredrick Man (grandsons of James Man) gave their initials to the name of the company, ED & F Man.  Today, ED & F Man operates separately as a commodities trading business.
The company moved into rum and sugar broking, and then later expanded into other commodities such as coffee and cocoa. Throughout the nineteenth and twentieth century, financial exchanges became established for hedging commodity exposures. Man became a major market participant; and the firm’s twentieth century partners established the company as a broker to third parties.
The physical commodity exchanges, where much of the world’s trading was done were also changing significantly. Increasingly, throughout the 1970s, financial instruments were traded, bringing new participants and increased volumes. Man was a broker to some of these traders, many of whom were trying to use the markets to make a return on price movement. Man became a partner in 1983 with new money management firms Mint.
This venture prompted a move into financial services. In 2000 the commodity trading companies went private with the result that Man became exclusively a financial services company. The demerger and flotation of its brokerage business renamed as MF Global on the New York stock exchange in 2007 moved the company into its present form, as an investment management business, within the hedge fund industry.
On 17 May 2010, the company announced the acquisition of the New York listed hedge fund GLG partners for $1.6 billion. GLG’s top executives, Noam Gottesman, Emmanuel Roman and Pierre Lagrange all received shares for their stakes in GLG, subject to a three year lock-in. Roman was subsequently named as chief operating officer of the combined entity. As of 30 September 2010 the Man Group had $63 billion of Assets Under Management.On Tuesday 22 March 2011 – Man Group announced it was selling its stake in Bluecrest Group making a £250million profit.
Man Investments operates through three internal and semi-autonomous money managers.

Man starts gradual acquisition of AHL    1989–1994
Man Group acquires Glenwood Capital Investment LLC, Glenwood Global Management LLC
and the remaining 40% stake it did not already own in Man Glenwood GmbHGroup    Nov 2000
Man Group acquires RMF Investment Group    May 2002
Man Group acquires a 25% interest in BlueCrest Capital Management Ltd an investment management services company    Dec 2003
Man Group launches Pemba Credit Advisers, an asset manager specialising in European credit portfolios    April 2007
Man Group acquires a 50% interest in Ore Hill Partners LLC, a provider of Investment Management Services.
Concurrently Ore Hill agreed to acquire a 50% stake in Pemba Credit Advisers Ltd from Man Group[    March 2008
Man launches a new investment manager Man ECO
Man Group acquires a 25% stake in Nephila Capital Ltd
Man Group acquires GLG Partners May 2010

man-annual-report-2011
Yesterday hedge fund Man Group surprised the City with a change of finance director, as it began life outside the FTSE 100.
The company, which was dropped from the top share index after losing around two-thirds of its value in the last year, said Kevin Hayes had left “to pursue other interests” with immediate effect.
He will be replaced by Jonathan Sorrell, son of WPP chief executive Martin Sorrell and formerly Man’s head of strategy and corporate finance.
Before joining Man last year, Sorrell had worked at investment bank Goldman Sachs for more than a decade.
Chief executive Peter Clarke said: “Since joining Man, Jonathan has played a key role, most recently in structuring the proposed acquisition of FRM.
“In his new position, Jonathan’s experience in financial markets, especially his deep working knowledge of the hedge fund industry, will be extremely valuable as we continue to develop and evolve in challenging world markets.”
A source told that the changes reflected a “fightback” move aimed at revitalising Man’s strategy and luring back unsettled investors by signalling a change of strategy.
It is thought Hayes left under amicable circumstances and the move had been agreed some time in advance.
However, his departure comes just a week after Man’s head of research methodology, Darren Upton, left to join to Isam, a rival company set up by former Man chief executive Stanley Fink.
Upton had led the team responsible for developing trading models for Man’s flagship AHL fund, which has suffered an extended run of poor performance.
AHL accounts for roughly 70 per cent of the group’s revenue, but the $21 billion (£13.4bn) fund lost 6.4 per cent last year. It was around 14 per cent away from its so-called high-water mark in March – the level at which it can start earning performance fees for Man.

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