Man Group

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Man Group plc
Public
Traded as LSEEMG
Industry Financial services
Founded 1783
Founder James Man
Headquarters Riverbank House
2 Swan Lane
London
United Kingdom
Area served
Worldwide
Key people
Products Investment products
Revenue Decrease US$1,150 million (2014)[1]
Increase US$391 million (2014)[1]
AUM Increase US$78.1 billion (December 2014)[1]
Number of employees
1078 (March 2015)
Divisions
Website Man.com

Man Group plc (Man Group) is an alternative investment management business initially founded as a sugar cooperage and brokerage by James Man in 1783. It provides a range of funds for institutional and private investors globally and is the world's largest publicly traded hedge fund, reporting $78.1 billion in funds under management as of March 2015.[2][3] The firm is headquartered at Riverbank House in London and employs over 1,000 people in various locations worldwide.[4] The company is a noted sponsor of the arts and charitable initiatives, including the Man Booker Prize and the Man Charitable Trust.

Under CEO Emmanuel "Manny" Roman the firm has made several acquisitions as part of its strategy to diversify the business, particularly in the United States, including Man Numeric, a quantitative equity manager. In recent years the firm has seen a shift towards institutional clients.

History[edit]

The company was founded by James Man in 1783 as a sugar cooperage and brokerage, based in Harp Lane in Billingsgate. The following year Man Group won 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 rum ration. This tradition continued until 1970, with Man Group holding the contract throughout the entire period.[5] The company further expanded from sugar and rum into other commodities such as coffee and cocoa. The company traded as a commodities business throughout the 19th and 20th century, gradually diversifying into financial services following the advent of financial exchanges to hedge commodity exposures.[5]

The firm was renamed ED & F Man in 1869, based on the initials of James Man's grandsons Edward Desborough Man and Fredrick Man. ED & F Man listed on the London Stock Exchange in 1994. In 2000 the company divided into two entirely separate businesses, with Man Group plc focusing exclusively on financial services and ED & F Man, the commodities division, being taken private in a management buy-out.[6]

In 2007 following the demerger and flotation of its brokerage business (known as MF Global) on the New York Stock Exchange, Man Group moved into its present form as an investment management business.[7]

Man Group attained its current structure over time through acquisition. Man AHL is the oldest investment manager of the group, having been acquired over time from 1989 to 1994. Man Group’s other investment managers were acquired between 2010 and 2012. Man Group acquired Man GLG, previously GLG Partners, in 2010 for $1.6 billion, then Man FRM in 2012 and Man Numeric in 2014.

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.[8]

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[9] 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[10]
Nov 2000
Man Group acquires RMF Investment Group[11] May 2002
Man Group acquires a 25% interest in BlueCrest Capital Management Ltd an investment management services company[12] Dec 2003
Man Group launches Pemba Credit Advisers, an asset manager specialising in European credit portfolios[13] 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[14]
March 2008
Man launches a new investment manager Man ECO specialising in financing environmentally
related projects (Man Environmental Capital Opportunities)[15]
April 2008
Man Group acquires a 25% stake in Nephila Capital Ltd[16] June 2008
Man Group agrees acquisition of GLG Partners[17] May 2010
Man Group acquires FRM Holdings[18][19] July 2012
Man Group agrees acquisition of Pine Grove Asset Management[20] June 2014
Man Group agrees acquisition of Numeric Holdings[21] 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).[22]

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.[23]

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

Man supports various awards, charities and initiatives around the world, including sponsorship of the Man Booker Prize,[25] Man Booker International Prize[26] and Man Asian Literary Prize,[27] as well as the Man Group International Climate Change Award.[28] 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.[29]

See also[edit]

References[edit]

  1. ^ a b c "Man Group final results 2014". Markets.FT.com. Pearson. Retrieved 12 June 2015. 
  2. ^ "Company snapshot". Alacrastore.com. Retrieved 18 April 2011. 
  3. ^ "Man Group". London Stock Exchange. 7 October 1994. Retrieved 18 April 2011. 
  4. ^ Global 50 Funds of Hedge Funds, The Hedgefund Journal, June 2009.
  5. ^ a b "Man Group: Timeline" (PDF). Retrieved 18 April 2011. 
  6. ^ "Corigins". strauscom.com. Retrieved 30 March 2015. 
  7. ^ Man Group's MF Global unit files for IPO Reuters, 1 June 2007
  8. ^ Ebrahimi, Helia (17 December 2008). "Bernard Madoff 'fraud': Man Group investigates funds". The Daily Telegraph (London). 
  9. ^ Man Is Feeling The Pull Of Gravity Business Week, 1 November 2004
  10. ^ ED&F Man Group PLC acquires Glenwood Capital Investements Thomson, 10 November 2000
  11. ^ Man Group PLC acquires RMF Investment Group Thomson, 31 May 2002
  12. ^ Man Group PLC acquires a minority stake in BlueCrest Capital Management Thomson, 31 December 2003
  13. ^ Man Group sets sail with Pemba into credit Hedge Funds Review, April 2007
  14. ^ Man Group PLC acquires Ore Hill Partners LLC (pending) Thomson, 31 March 2008
  15. ^ Man ECO announces $635 million raised for China Methane Recovery Fund CPI Financial, 10 April 2008
  16. ^ Man Group PLC acquires a minority stake in Nephila Capital Ltd Thomson, 6 June 2008
  17. ^ Man agrees takeover of GLG FT, 17 May 2010
  18. ^ Man Group to acquire rival FRM FT, 21 May 2012
  19. ^ Acquisition of FRM Holdings Limited by Man Group maninvestments.com.au, 17 July 2012
  20. ^ U.K. Hedge Fund Man Group Buys U.S. Fund of Funds Pine Grove The Wall Street Journal, 9 June 2014
  21. ^ Man Group to Buy Numeric Holdings of Boston The New York Times, 19 June 2014
  22. ^ 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. 
  23. ^ Oxford-Man Institute of Quantitative Finance officially opened University of Oxford, 19 September 2007
  24. ^ Profit from a changing climate European Business, January 2008
  25. ^ "The Man Booker Prize". The Man Booker Prize. Retrieved 18 April 2011. 
  26. ^ "Man International Booker Prize". Themanbookerprize.com. Retrieved 18 April 2011. 
  27. ^ MALP News. "Man Asian Literary Prize". Man Asian Literary Prize. Retrieved 18 April 2011. 
  28. ^ Awards for Excellence BITC
  29. ^ 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]