Man Group
Encyclopedia
Man Group plc is a British alternative investment
management business. It provides a range of funds for institutional and private investors globally. The company manages about US$68 billion (January 2011) and employs around 1,700 people in 15 locations worldwide.
Man’s headquarters are at Riverbank House in London, where it is listed on the London Stock Exchange. It also has offices in the Bahamas, Chicago, Dubai, Dublin, Guernsey, Hong Kong, Miami, Montevideo, New York, Rotterdam, Singapore, Sydney, Switzerland, Tokyo, and Toronto. It is a component of the FTSE 100 Index.
, a barrel maker
. 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. (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. 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 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 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.
On 17 May 2010, the company announced the acquisition of the New York listed hedge fund GLG partners for $1.6 billion. 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.
On Tuesday 22 March 2011 – Man Group announced it was selling its stake in Bluecrest Group making a £250million profit.
on behalf of their clients through Man Group's RMF fund of funds.
These divisions have key centres in the UK, Switzerland, Asia and the USA.
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 and is a registered carbon-neutral company.
Man supports various awards, charities and initiatives around the world, including sponsorship of the Man Booker prize, Man Booker International Prize
and Man Asian Literary Prize
, as well as the Man Group International Climate Change Award.
Alternative investment
An alternative investment is an investment product other than the traditional investments of stocks, bonds, cash, or property. The term is a relatively loose one and includes tangible assets such as art, wine, antiques, coins, or stamps and some financial assets such as commodities, private equity,...
management business. It provides a range of funds for institutional and private investors globally. The company manages about US$68 billion (January 2011) and employs around 1,700 people in 15 locations worldwide.
Man’s headquarters are at Riverbank House in London, where it is listed on the London Stock Exchange. It also has offices in the Bahamas, Chicago, Dubai, Dublin, Guernsey, Hong Kong, Miami, Montevideo, New York, Rotterdam, Singapore, Sydney, Switzerland, Tokyo, and Toronto. It is a component of the FTSE 100 Index.
History
The company was founded in 1783, by James ManJames Man
James Man was the founder of Man Group, the United Kingdom's largest alternative investment management business and a constituent of the FTSE 100 Index.-Career:...
, a barrel maker
Cooper (profession)
Traditionally, a cooper is someone who makes wooden staved vessels of a conical form, of greater length than breadth, bound together with hoops and possessing flat ends or heads...
. The following year the company secured the contract to supply the Royal Navy
Royal Navy
The Royal Navy is the naval warfare service branch of the British Armed Forces. Founded in the 16th century, it is the oldest service branch and is known as the Senior Service...
with the rum for its daily “rum tot”, a tradition under which all sailors were allocated a daily ration of rum. (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. Today, ED & F Man operates separately as a commodities trading business.
The company moved into rum
Rum
Rum is a distilled alcoholic beverage made from sugarcane by-products such as molasses, or directly from sugarcane juice, by a process of fermentation and distillation. The distillate, a clear liquid, is then usually aged in oak barrels...
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
Broker
A broker is a party that arranges transactions between a buyer and a seller, and gets a commission when the deal is executed. A broker who also acts as a seller or as a buyer becomes a principal party to the deal...
to third parties.
The physical commodity exchanges, where much of the world’s trading
Trade
Trade is the transfer of ownership of goods and services from one person or entity to another. Trade is sometimes loosely called commerce or financial transaction or barter. A network that allows trade is called a market. The original form of trade was barter, the direct exchange of goods and...
was done were also changing significantly. Increasingly, throughout the 1970s, financial instruments
Financial instruments
A financial instrument is a tradable asset of any kind, either cash; evidence of an ownership interest in an entity; or a contractual right to receive, or deliver, cash or another financial instrument....
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
Return
-In business, economics, and finance:* Rate of return, the financial term for the profit or loss derived from an investment* Tax return , various meanings relating to taxation...
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
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
.
This venture prompted a move into financial services
Financial services
Financial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
, which the company increasingly concentrated on. In 2000, the commodity trading companies went private with the result that Man became exclusively a financial services company. The demerger and flotation
Flotation
Flotation involves phenomena related to the relative buoyancy of objects. The term may refer to:* Flotation, any material added to the hull of a watercraft to keep the hull afloat...
of its brokerage business renamed as MF Global
MF Global
MF Global , formerly known as Man Financial, was a major global financial derivatives broker. MF Global provided exchange-traded derivatives, such as futures and options as well as over-the-counter products such as contracts for difference , foreign exchange and spread betting. MF Global was...
on the New York stock exchange in 2007 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.
On 17 May 2010, the company announced the acquisition of the New York listed hedge fund GLG partners for $1.6 billion. 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.
On Tuesday 22 March 2011 – Man Group announced it was selling its stake in Bluecrest Group making a £250million profit.
Madoff fraud
In December 2008, Man Group revealed it had invested $360 million in Bernard Madoff's ponzi schemesMadoff investment scandal
The Madoff investment scandal broke in December 2008 when former NASDAQ chairman Bernard Madoff admitted that the wealth management arm of his business was an elaborate Ponzi scheme....
on behalf of their clients through Man Group's RMF fund of funds.
Business model
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
| Transaction | Date |
|---|---|
| Man Group acquires GLG Partners GLG Partners GLG Partners, Inc. is an American global hedge fund sponsor that, as of 14th October 2010, is a wholly owned subsidiary of British alternative investment manager Man plc... |
May 2010 |
| Man Group acquires a 25% stake in Nephila Capital Ltd | June 2008 |
| Man launches a new investment manager Man ECO specialising in financing environmentally related projects (Man Environmental Capital Opportunities) |
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 |
March 2008 |
| Man Group launches Pemba Credit Advisers, an asset manager specialising in European credit portfolios | April 2007 |
| Man Group acquires a 25% interest in BlueCrest Capital Management Ltd an investment management services company | Dec 2003 |
| Man Group acquires RMF Investment Group | 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 |
Nov 2000 |
| Man starts gradual acquisition of AHL | 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.Man is a member of the FTSE4Good Index
FTSE4Good Index
The FTSE4Good Index series is a series of ethical investment stock market indices launched in 2001 by the FTSE Group. A number of stock market indices are available, for example covering UK shares, US shares, European markets, and Japan, with inclusion based on a range of corporate social...
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 and is a registered carbon-neutral company.
Man supports various awards, charities and initiatives around the world, including sponsorship of the Man Booker prize, Man Booker International Prize
Man Booker International Prize
The Man Booker International Prize is a biennial international literary award given to a living author of any nationality for a body of work published in English or generally available in English translation....
and Man Asian Literary Prize
Man Asian Literary Prize
The Man Asian Literary Prize, founded in 2007, is an annual literary award given to the best novel by an Asian writer, either written in English or translated into English, and published in the previous calendar year...
, as well as the Man Group International Climate Change Award.
See also
- Hedge FundHedge fundA hedge fund is a private pool of capital actively managed by an investment adviser. Hedge funds are only open for investment to a limited number of accredited or qualified investors who meet criteria set by regulators. These investors can be institutions, such as pension funds, university...
- Man Booker PrizeMan Booker PrizeThe Man Booker Prize for Fiction is a literary prize awarded each year for the best original full-length novel, written in the English language, by a citizen of the Commonwealth of Nations, Ireland, or Zimbabwe. The winner of the Man Booker Prize is generally assured of international renown and...
- Man Booker International PrizeMan Booker International PrizeThe Man Booker International Prize is a biennial international literary award given to a living author of any nationality for a body of work published in English or generally available in English translation....
- Man Asian Literary PrizeMan Asian Literary PrizeThe Man Asian Literary Prize, founded in 2007, is an annual literary award given to the best novel by an Asian writer, either written in English or translated into English, and published in the previous calendar year...
Further reading
- Jenkins, Alan C., 1989, The House of Man, London, UK: Rainbird Publishing. ISBN 0099953706