Man Group


Man Group
Man Group plc
Type Public company (LSEEMG)
Industry Financial services
Founded 1783
Headquarters London, United Kingdom
Key people Peter Clarke,[1] (CEO)
Kevin Hayes, CFO (CFO)
Products Investment products
Revenue US$1,345 million (2010)[2]
Operating income US$548 million (2010)[2]
Net income US$445 million (2010)[2]
Employees 1,776 (2009)[2]
Website www.mangroupplc.com

Man Group plc (Man) (LSEEMG) is a British alternative investment management business. It provides a range of funds for institutional and private investors globally.[3] The company manages about US$68 billion (January 2011) and employs around 1,700 people in 15 locations worldwide.[4]

Man’s headquarters are at Riverbank House in London, where it is listed on the London Stock Exchange.[5] It also has offices in the Bahamas, Chicago, Dubai, Dublin, Guernsey, Hong Kong, Miami, Montevideo, New York, Rotterdam, Singapore, Sydney, Switzerland, Tokyo, and Toronto.[3] It is a component of the FTSE 100 Index.[6]

Contents

History

The company was founded in 1783, by James Man, a barrel maker.[7] The following year the company secured the contract to supply the Royal Navy with the rum for its daily “rum tot”, a tradition under which all sailors were allocated a daily ration of rum.[7] (This tradition continued until 1970, with Man holding the contract throughout the entire period). In 1860 Edward Desborough Man and Fredrick Man (grandsons of James Man) gave their initials to the name of the company, ED & F Man.[7] 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 century and into the twentieth, financial exchanges became established for hedging commodity exposures and grew rapidly over the ensuing decades. 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 movements, rather than simply attempting to protect themselves against the uncertainties inherent to trading. Man became a partner in 1983 with one of these new money management firms, Mint, which was based in New Jersey.

This venture prompted a move into financial services, which the company increasingly concentrated on. In 2000, the commodity trading companies went private[8] 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[9] moved the company into its present form, as an investment management business, within the alternative (sometimes called “non-traditional”) fund management industry, principally hedge funds. According to Institutional Investor magazine, its hedge funds have a combined $54.2 billion in assets under management. [10]

On 17 May 2010, the company announced the acquisition of the New York listed hedge fund GLG partners for $1.6 billion.[11] 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.[12] On Tuesday 22 March 2011 – Man Group announced it was selling its stake in Bluecrest Group making a £250million profit.[13]

Madoff fraud

In December 2008, Man Group revealed it had invested $360 million in Bernard Madoff's ponzi schemes on behalf of their clients through Man Group's RMF fund of funds.[14]

Business model

Man Investments operates through three internal and semi-autonomous money managers.

Money manager Strategy Performance Last 12 months %
Man AHL Managed futures 14.8%[15]
Man Multi-Manager Multi-strategy and style hedge fund portfolios 5.7%
GLG Range of alternative, traditional long-only and hybrid investment portfolios

These divisions have key centres in the UK, Switzerland, Asia and the USA.

Mergers and acquisitions

Transaction Date
Man Group acquires GLG Partners[16] May 2010
Man Group acquires a 25% stake in Nephila Capital Ltd[17] June 2008
Man launches a new investment manager Man ECO specialising in financing environmentally
related projects (Man Environmental Capital Opportunities)[18]
April 2008
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[19]
March 2008
Man Group launches Pemba Credit Advisers, an asset manager specialising in European credit portfolios[20] April 2007
Man Group acquires a 25% interest in BlueCrest Capital Management Ltd an investment management services company[21] Dec 2003
Man Group acquires RMF Investment Group[22] May 2002
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[23]
Nov 2000
Man starts gradual acquisition of AHL[24] 1989–1994

Corporate responsibility

In June 2007, Man sponsored a joint venture with the University of Oxford, the Oxford-Man Institute of Quantitative Finance. Man’s initial financial commitment was £13.75 million, one of the largest single donations to a British higher education institution in recent years.[25]

Man is a member of the FTSE4Good Index and the Dow Jones Sustainability World Index.

The company was ranked 7th on the CNBC European Business magazine of the Global Top 100 Carbon Pioneers[26] and is a registered carbon-neutral company.

Man supports various awards, charities and initiatives around the world, including sponsorship of the Man Booker prize,[27] Man Booker International Prize[28] and Man Asian Literary Prize,[29] as well as the Man Group International Climate Change Award.[30]

See also

References

  1. ^ Peter Clarke interview: the danger is how investors react to the volatilty created by the eurozone debt crisis Daily Telegraph, 16 July 2011
  2. ^ a b c d "Annual Report 2010" (PDF). http://www.mangroupplc.com/assets/pdf/annual-reports/annual-report-2010.pdf. Retrieved 18 April 2011. 
  3. ^ a b "Company snapshot". Alacrastore.com. http://www.alacrastore.com/company-snapshot/Man_Group_plc-1026820. Retrieved 18 April 2011. 
  4. ^ Global 50 Funds of Hedge Funds, The Hedgefund Journal, June 2009.
  5. ^ "Man Group". London Stock Exchange. 7 October 1994. http://www.londonstockexchange.com/en-gb/pricesnews/prices/system/detailedprices.htm?sym=GB00B28KQ186GBGBXSET1B28KQ18EMG. Retrieved 18 April 2011. 
  6. ^ "FTSE 100 listing" (PDF). http://www.ftse.com/Research_and_Publications/2008Downloads/ASWB_1008.pdf. Retrieved 18 April 2011. 
  7. ^ a b c "Man Group: Timeline" (PDF). http://www.mangroupplc.com/assets/pdf/media/timeline.pdf. Retrieved 18 April 2011. 
  8. ^ ED&F Man: Company profile
  9. ^ Man Group's MF Global unit files for IPO Reuters, 1 June 2007
  10. ^ "The 2011 Hedge Fund 100 Ranking". Institutional Investor, Inc.. May 12, 2011. http://www.institutionalinvestor.com/Research/3196/Hedge-Fund-100-Ranking.html. 
  11. ^ Financial Times (17 May 2010). "Man agrees $1.6bn takeover of rival GLG". http://www.ft.com/cms/s/0/8a49881c-6186-11df-aa80-00144feab49a.html. 
  12. ^ Opalesque (15 October 2010). "Man completes acquisition of GLG, Man Group plans first GLG-AHL structured product". http://www.opalesque.com/fullarticle/61040/man%20group/Update_Man_completes_acquisition_of_GLG953.html. 
  13. ^ "Man Group sells BlueCrest stake". Daily Telegraph. 22 March 2011. http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8398922/Man-Group-sells-BlueCrest-stake.html. 
  14. ^ Ebrahimi, Helia (17 December 2008). "Bernard Madoff 'fraud': Man Group investigates funds". The Daily Telegraph (London). http://www.telegraph.co.uk/finance/financetopics/bernard-madoff/3815922/Bernard-Madoff-fraud-Man-Group-investigates-funds.html. 
  15. ^ Group Sinks as Investor Pulls $1 Billion, Analysts Question Fee Growth Bloomberg, 20 January 2011
  16. ^ Man agrees takeover of GLG FT, 17 May 2010
  17. ^ Man Group PLC acquires a minority stake in Nephila Capital Ltd Thomson, 6 June 2008
  18. ^ Man ECO announces $635 million raised for China Methane Recovery Fund CPI Financial, 10 April 2008
  19. ^ Man Group PLC acquires Ore Hill Partners LLC (pending) Thomson, 31 March 2008
  20. ^ Man Group sets sail with Pemba into credit Hedge Funds Review, April 2007
  21. ^ Man Group PLC acquires a minority stake in BlueCrest Capital Management Thomson, 31 December 2003
  22. ^ Man Group PLC acquires RMF Investment Group Thomson, 31 May 2002
  23. ^ ED&F Man Group PLC acquires Glenwood Capital Investements Thomson, 10 November 2000
  24. ^ Man Is Feeling The Pull Of Gravity Business Week, 1 November 2004
  25. ^ Oxford-Man Institute of Quantitative Finance officially opened University of Oxford, 19 September 2007
  26. ^ Profit from a changing climate European Business, January 2008
  27. ^ "The Man Booker Prize". The Man Booker Prize. http://www.themanbookerprize.com. Retrieved 18 April 2011. 
  28. ^ "Man International Booker Prize". Themanbookerprize.com. http://www.themanbookerprize.com/prize/man-booker-international. Retrieved 18 April 2011. 
  29. ^ by MALP News. "Man Asian Literary Prize". Man Asian Literary Prize. http://www.manasianliteraryprize.org. Retrieved 18 April 2011. 
  30. ^ Awards for Excellence BITC

Further reading

  • Jenkins, Alan C., 1989, The House of Man, London, UK: Rainbird Publishing. ISBN 0099953706

External links

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