Man Group

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Man Group plc
Type Public company
Traded as LSEEMG
Industry Financial services
Founded 1783
Headquarters London, United Kingdom
Key people Jon Aisbitt, (Chairman)
Emmanuel Roman, (CEO)
Products Investment products
Revenue US$1,160 million (2013)[1]
Operating income US$56 million (2013)[1]
Net income US$72 million (2013)[1]
Website www.man.com

Man Group plc (Man) is a British alternative investment management business. It provides a range of funds for institutional and private investors globally.[2] The company manages about US$52 billion (June, 2013) and employs over 1,200 people in 14 locations worldwide.[3]

Man’s headquarters are at Riverbank House in London, where it is listed on the London Stock Exchange.[4] It also has offices in the Bahamas, Chicago, Dubai, Dublin, Guernsey, Hong Kong, Luxembourg, Miami, Milan, Montevideo, New York, Pfäffikon, Rotterdam, Singapore, Sydney, Tokyo, and Toronto.[2] In June 2012, Man was demoted from the FTSE 100, due to a decline of market capitalization.[5]

History[edit]

The company was founded in 1783, by James Man, a barrel maker.[6] 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.[6] (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.[6] 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 profit 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[7] 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[8] 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 US$54.2 billion in assets under management.[9]

On 17 May 2010, the company announced the acquisition of the New York listed hedge fund GLG Partners for US$1.6 billion[10] and on 22 March 2011 Man Group announced it was selling its stake in Bluecrest Group making a £250 million profit.[11]

In November 2012, Man was deleted from the MSCI index.[12] On 27 February 2013 a Man Group trader was arrested by police on suspicion of insider trading.[13]

In early 2014, Man Group CEO Emmanuel Roman expressed an intention to make acquisitions that would diversify revenues away from the flagship fund AHL.[14] In June 2014, he said that the acquisition of U.S.-based Numeric Holdings further the company's two main objectives of diversifying business and expanding its presence in the United States.

Madoff fraud[edit]

In December 2008, Man Group revealed it had invested US$360 million in Bernard Madoff's ponzi schemes on behalf of their clients through Man Group's RMF fund of funds.[15]

Business model[edit]

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

Money manager Strategy
Man AHL Managed futures
Man Multi-Manager Multi-strategy and style hedge fund portfolios
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[edit]

Transaction Date
Man starts gradual acquisition of AHL[16] 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[17]
Nov 2000
Man Group acquires RMF Investment Group[18] May 2002
Man Group acquires a 25% interest in BlueCrest Capital Management Ltd an investment management services company[19] Dec 2003
Man Group launches Pemba Credit Advisers, an asset manager specialising in European credit portfolios[20] 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[21]
March 2008
Man launches a new investment manager Man ECO specialising in financing environmentally
related projects (Man Environmental Capital Opportunities)[22]
April 2008
Man Group acquires a 25% stake in Nephila Capital Ltd[23] June 2008
Man Group agrees acquisition of GLG Partners[24] May 2010
Man Group acquires FRM Holdings[25][26] July 2012
Man Group agrees acquisition of Pine Grove Asset Management[27] June 2014
Man Group agrees acquisition of Numeric Holdings[28] June 2014

Corporate responsibility[edit]

In the 1990s, Man was a founding member of the East London Partnership, which became the East London Business Alliance (ELBA).[29]

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.[30]

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[31] and is a registered carbon-neutral company.

Man supports various awards, charities and initiatives around the world, including sponsorship of the Man Booker Prize,[32] Man Booker International Prize[33] and Man Asian Literary Prize,[34] as well as the Man Group International Climate Change Award.[35] In October 2012 the Man Group announced they would be dropping sponsorship of the Asian Literary Prize in March 2013, after five years of support.[36]

See also[edit]

References[edit]

  1. ^ a b c "Preliminary Results 2013". Retrieved 22 March 2014. 
  2. ^ a b "Company snapshot". Alacrastore.com. Retrieved 18 April 2011. 
  3. ^ Global 50 Funds of Hedge Funds, The Hedgefund Journal, June 2009.
  4. ^ "Man Group". London Stock Exchange. 7 October 1994. Retrieved 18 April 2011. 
  5. ^ "UPDATE 1-Man Group to exit UK blue chip index - FTSE". 
  6. ^ a b c "Man Group: Timeline" (PDF). Retrieved 18 April 2011. 
  7. ^ ED&F Man: Company profile
  8. ^ Man Group's MF Global unit files for IPO Reuters, 1 June 2007
  9. ^ "The 2011 Hedge Fund 100 Ranking". Institutional Investor, Inc. 12 May 2011. 
  10. ^ Financial Times (17 May 2010). "Man agrees $1.6bn takeover of rival GLG". 
  11. ^ "Man Group sells BlueCrest stake". Daily Telegraph. 22 March 2011. 
  12. ^ "Stocks News Europe-Alcatel, Man Group among MSCI deletions". Reuters. 15 November 2012. Retrieved 19 November 2012. 
  13. ^ "Man Group employee arrested in insider trading probe". 
  14. ^ "Man Group steps up search for deal to diversify business". 19 February 2014. Retrieved 5 July 2014. 
  15. ^ Ebrahimi, Helia (17 December 2008). "Bernard Madoff 'fraud': Man Group investigates funds". The Daily Telegraph (London). 
  16. ^ Man Is Feeling The Pull Of Gravity Business Week, 1 November 2004
  17. ^ ED&F Man Group PLC acquires Glenwood Capital Investements Thomson, 10 November 2000
  18. ^ Man Group PLC acquires RMF Investment Group Thomson, 31 May 2002
  19. ^ Man Group PLC acquires a minority stake in BlueCrest Capital Management Thomson, 31 December 2003
  20. ^ Man Group sets sail with Pemba into credit Hedge Funds Review, April 2007
  21. ^ Man Group PLC acquires Ore Hill Partners LLC (pending) Thomson, 31 March 2008
  22. ^ Man ECO announces $635 million raised for China Methane Recovery Fund CPI Financial, 10 April 2008
  23. ^ Man Group PLC acquires a minority stake in Nephila Capital Ltd Thomson, 6 June 2008
  24. ^ Man agrees takeover of GLG FT, 17 May 2010
  25. ^ Man Group to acquire rival FRM FT, 21 May 2012
  26. ^ Acquisition of FRM Holdings Limited by Man Group maninvestments.com.au, 17 July 2012
  27. ^ U.K. Hedge Fund Man Group Buys U.S. Fund of Funds Pine Grove The Wall Street Journal, 9 June 2014
  28. ^ Man Group to Buy Numeric Holdings of Boston The New York Times, 19 June 2014
  29. ^ Ball, Stephen J; Junemann, Carolina (2012), Networks, New Governance and Education, p. 89: 'And Man was a founding member of what was called East London Partnership, which became East London Business Alliance, which is a business membership corporate social responsibility organisation focused on the communities in the East End, as the name suggests.', retrieved 2014-09-01. 
  30. ^ Oxford-Man Institute of Quantitative Finance officially opened University of Oxford, 19 September 2007
  31. ^ Profit from a changing climate European Business, January 2008
  32. ^ "The Man Booker Prize". The Man Booker Prize. Retrieved 18 April 2011. 
  33. ^ "Man International Booker Prize". Themanbookerprize.com. Retrieved 18 April 2011. 
  34. ^ by MALP News. "Man Asian Literary Prize". Man Asian Literary Prize. Retrieved 18 April 2011. 
  35. ^ Awards for Excellence BITC
  36. ^ Allen, Katie (18 October 2012). "Asian Literary Prize seeks new sponsor". The Bookseller. Retrieved 19 November 2012. 

Further reading[edit]

  • Jenkins, Alan C., 1989, The House of Man, London, UK: Rainbird Publishing. ISBN 0-09-995370-6

External links[edit]