Man Group Plc, the largest publicly traded hedge-fund firm, doesn’t expect to make “significant” acquisitions after its purchase of GLG Partners Inc., Chief Executive Officer Peter Clarke said.
“It is effectively job done for our liquid trading strategies,” Clarke, 49, said today at the GAIM International hedge-fund conference in Monaco. “It’s possible we could infill with smaller mergers in Asia-Pacific.”
Man Group last month agreed to buy GLG for $1.6 billion to expand its range of funds. The acquisition will create a firm with a combined $63 billion in assets, easing dependence on Man AHL Diversified Plc, an investment program that accounts for more than half of Man Group’s holdings.
AHL has gained 4.6 percent this year, after posting a drop of 17 percent in 2009, its first annual loss, according to Bloomberg data. Hedge funds rose 1.3 percent this year through the end of May, according to Chicago-based Hedge Fund Research Inc.’s Fund Weighted Hedge Fund Composite Index.
“It is increasingly looking like a world of volatility and uncertainty and CTAs historically do well in that environment,” Clarke said in a panel discussion at the event. The CEO expects the acquisition of GLG to be “earnings enhancing,” bringing a return on capital within three years.
Man Group gained 0.4 percent to 245.9 pence as of 11:40 a.m. in London, giving the company a market value of about 4.2 billion pounds ($6.2 billion).
Hedge funds are private, lightly regulated pools of capital whose managers can buy or sell assets, bet on falling as well as rising asset prices and participate in profits from money invested.