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February 17, 2013 9:34 pm
Man Group’s incoming chief is poised to announce a sweeping management shake-up of the world’s largest listed hedge fund.
Emmanuel Roman is due to take over as chief executive from Peter Clarke on February 28, when the company announces its full-year results for 2012, a year in which Man haemorrhaged assets and its share price slumped 36 per cent.
The overhaul will amount to a significant consolidation of Mr Roman’s own power base in the company and will indicate the extent to which he will exercise far more executive control over its day-to-day operation.
A management reshuffle will close to double the size of Man’s executive committee. The committee, under which Mr Clarke met monthly, will now meet weekly.
Details of the changes have been announced to senior staff in a memorandum, a copy of which was seen by the Financial Times. “The new executive committee will be a cohesive body with an uncompromising focus on delivering performance for investors and shareholders,” it says.
The company declined to comment.
Luke Ellis will become president of the company with oversight of its three main investment divisions, FRM, GLG and AHL.
Mr Ellis currently heads the FRM fund of funds business and was a former adviser at GLG Partners, the hedge fund led by Mr Roman that Man acquired in 2010.
Sandy Rattray, another former colleague of Mr Roman’s from Goldman Sachs and GLG will take over from Tim Wong as chief executive of AHL, Man’s flagship quantitative division. Mr Wong become executive chairman of the division. Both will have seats on the executive committee.
Mark Jones, GLG’s 32-year-old chief operating officer, will be promoted to the executive committee alongside Teun Johnston as co-chief executives of the division.
Simon White, another former colleague of Mr Roman’s from GLG will join the executive committee as head of operations and technology.
The company will also appoint a new head of sales to the committee and drop the seat on it for its general counsel.
Mr Roman is also keen to embark on a hiring spree for AHL and intends to allocate significantly more resources to the troubled division, said a person familiar with Man’s restructuring plans.
Analysts had expected Mr Roman to try to further reduce the company’s dependence on AHL, whose underperformance has been the main cause of Man’s difficulties in recent years. Under Mr Roman’s plans, Man’s current quantitative development unit, MSS, will be merged into AHL.
A senior executive at the company said Mr Roman hopes the changes will put the company on a better footing to deal with a “base case” scenario of tough markets and subdued performance for Man’s funds.
Investors expect Man to announce steep accounting write-offs related to its acquisition of GLG and the underperformance of other core businesses when it announces its results at the end of the month.
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