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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.
