M and A
UK-Based Man Group Confirms Talks Over Acquisition Of US Quant Investor
UK hedge fund manager Man Group, the largest listed hedge funds company in the world, has confirmed that it is in talks for the possible acquisition of Boston-based investment manager Numeric Holdings.
UK hedge fund manager Man Group, the largest
listed hedge funds company in the world, has confirmed that it is
in talks for the possible acquisition of Boston, MA-based
investment manager Numeric
Holdings.
Man Group said in a statement released on the London Stock
Exchange that it had “noted” recent press speculation and was in
ongoing discussions that “may or may not” lead to a
transaction.
Founded in 1989, Numeric specializes in quantitative analysis to
make investments and has over $13.9 billion in assets.
Quantitative trading strategies are based
on quantitative analysis which rely on mathematical
computations and number crunching to
identify trading opportunities.
If the deal goes ahead, it will bolster Man Group's presence in
the US through Numeric's institutional investor client base as
well broadening its quantitative analysis offering. The move will
also help Man Group diversify away from AHL, its managed funds
business.
Earlier this month, Man Group reported that funds under
management crept higher to $55 billion at the end of March from
$54.1 billion at the end of December, with stronger inflows
pointing to a more upbeat investor mood than has existed for some
time.
Man Group’s flagship AHL Diversified Program fell 2.2 per cent in
the quarter, which was the main driver of the negative investment
movement of $300 million in quant alternatives strategies;
performance in GLG alternative strategies was flat overall with
positive performance in credit strategies being offset by
negative performance in equity and macro strategies.
As such a large firm in the alternative investment management
sector, Man Group’s results are something of a bellwether of the
state of the hedge fund industry in general; its listed status
means that, unlike many hedge fund businesses, it has to disclose
results relatively promptly.
