GLG Partners Inc., the investment firm acquired by Man Group Plc in 2010, has started a hedge fund modeled after its flagship European equity pool that will trade the stocks of global companies, according to three people with knowledge of the matter.
The fund started trading this month and is overseen by Pierre Lagrange, Simon Savage and Darren Hodges, who manage the London-based firm’s $3 billion European Long-Short Fund, said the people, who asked not to be identified because it hasn’t been announced publicly. GLG plans to hire traders and analysts with experience investing in U.S. and Asian companies to work on the fund, said one of the people.
Man Group has been unveiling new hedge funds in an effort to boost assets after clients pulled more than $10 billion from its biggest one, AHL Diversified, since the end of 2010. The company has had success this year raising money for funds focused on stocks and credit as equity markets rise and investors become less concerned that the European sovereign debt-crisis is hurting economic growth, Man Group Chief Executive Officer Emmanuel Roman told analysts yesterday.
Officials at Man Group declined to comment on the new fund.
GLG’s European Long-Short Fund rose 7.4 percent in the nine months through September, compared with a 9 percent gain for equity hedge funds on average, according to data compiled by Chicago-based Hedge Fund Research Inc. The fund, which is restricted to investing in companies based in Europe, has gained about 9.9 percent a year since GLG co-founder Lagrange, 51, started it in 2000, according to data compiled by Bloomberg.
GLG last year formed its first Asian long-short equities team, which is based in Hong Kong. Man Group has tried to increase its presence outside Europe to boost assets, naming Lagrange chairman of the company’s Asia business in 2011. Man Group manages $52.5 billion, down 23 percent from $68.6 billion at the end of 2010.
Man Group bought GLG for $1.6 billion three years ago after analysts questioned whether the company was too dependent on AHL, a $12.5 billion hedge fund that relies on signals from computer models to follow profitable trends in interest rates, bonds and stocks. AHL has posted investment losses since 2010, contributing to a 71 percent plunge in Man Group’s share price.