Man Group Plc, the world’s largest publicly traded hedge fund firm, hired former Millennium Capital Management money manager Abhijeet Gaikwad as it seeks to build a new quantitative-investment unit.
The firm started hiring for the Oxford, England-based “quantitative incubating” unit last month, according to a spokeswoman. Sanatan Rai, who previously worked at BlueCrest Capital Management, has also joined as a money manager.
The unit will give capital to individual money managers to use mathematical models to trade across asset classes. It’s part of Man Group’s $17 billion AHL division that uses computer-driven strategies and is led by Francois Moreau and Jaco Vermaak, according to a person familiar with the matter. Three more money manages are expected to join this year, said the person, asking not to be identified because the information is private.
The Man Group spokeswoman declined to comment on hiring plans.
Man Group managed $78.7 billion in assets at the end of last year and has been hiring money managers to diversify its business. It has benefited from a mounting regulatory burden that’s forcing many traders to abandon plans to start their own funds and instead join existing firms. Investors are also becoming reluctant to give money to startups.
The expansion at AHL is similar to the growth at Man Group’s GLG unit that uses fundamental analysis and has employed more than half a dozen money managers since 2014. It hired Rory Hill and Ben Lynch, formerly of Moore Capital Management LP, this year, as well as Guillermo Osses, who helped oversee more than $20 billion at HSBC Asset Management.
About a tenth of the 910 hedge funds started last year followed quantitative strategies, down from 13 percent in 2014, according to data from Preqin.