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January 8, 2013 5:44 pm
Man Group, the world’s second largest hedge fund by assets, on Tuesday announced a big shift in investment strategy as it seeks to turnround last year’s share price collapse.
The London-listed company, which suffered a more than 30 per cent plunge in its shares in 2012, is making changes at its GLG unit, the London-based hedge fund it bought in 2010.
The changes come a month after Man announced that Peter Clarke, its chief executive, would be succeeded by Emmanuel “Manny” Roman, who will be moving from the role of president and chief operating officer.
Mr Roman, a former Goldman Sachs partner who was chief executive of GLG before it was taken over, has been playing an increasingly influential role at the group.
The new investment approach at the GLG unit will combine developed and emerging market strategies in a policy shift that has prompted the departure of two key portfolio managers.
Bart Turtelboom and Karim Abdel-Motaal, who led emerging market hedge funds at GLG, will be leaving the company at the end of the month, while Kumaran Damodaran, who was a portfolio manager at US fund manager Pimco, and Brian Pinto, who was an adviser at the World Bank, have joined the group.
The new recruits will report to Sudi Mariappa and Jamil Baz, who will jointly lead the new macro and fixed income group, overseeing both developed and emerging market strategies and asset allocation.
The company said the reason for the shift, which is likely to prompt the creation of new funds shortly, is because the developed and emerging world are more integrated, meaning investment decisions in the two market places need to be co-ordinated more closely.
Mr Mariappa joined GLG in October after heading an $80bn fixed-income fund at US based Pimco. Mr Baz, who manages GLG’s Atlas Macro hedge fund, joined the company in 2008, also from Pimco.
The company also announced that Richard Bateson, a strategist at AHL, Man’s computer driven fund, has moved over to GLG as a senior quantitative analyst.
Man shares rose 3.5 per cent to 90.70p. The shares have rallied sharply since the company announced on December 10 that Mr Roman would replace Mr Clarke as chief executive.
Separately, it emerged that hedge funds that use computers to follow trends, such as Man’s AHL fund, lost money for a second straight year in 2012 as political debates over the US fiscal cliff and Europe’s sovereign-debt crisis roiled markets.
The Newedge CTA Trend Sub-Index, which tracks the performance of the largest computer-driven, or quant funds, fell 3.4 per cent last year after a 7.9 per cent decline in 2011.
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