Man Group Names Rattray CIO in Reshuffle Under New CEO Ellis

  • Management changes follow departure of former CEO Manny Roman
  • Mark Jones will replace Jonathan Sorrell as finance chief

Man Group Plc named Sandy Rattray its chief investment officer as part of a reshuffle at the world’s largest publicly traded hedge-fund firm following the departure of former chief executive officer Manny Roman.

Rattray, who joined Man Group in 2007, will remain chief executive officer of Man AHL, the firm’s computer-driven investment unit, the company said in a statement on Friday. Luke Ellis, who this week replaced Roman as Man Group’s CEO, was the previous CIO. Mark Jones will become chief financial officer after Jonathan Sorrell gives up the role.

Sandy Rattray

Source: Man Group Plc

Man Group has been hiring money managers and expanding through acquisitions to diversify its business. The firm has added more than $22 billion to its assets by acquiring money managers such as Numeric and Silvermine, according to its annual report for 2015. In a Bloomberg TV interview in July, Ellis said his new strategy would be “more of the same.”

“The firm has changed a great deal in the past few years and, with my own role also changing, it made sense to look at the way we are organized and where different responsibilities should lie,” Ellis said in the statement.

Rattray, a former managing director at Goldman Sachs Group Inc., joined Man Group through its acquisition of GLG Partners. He studied natural sciences and economics at Cambridge University and co-invented the VIX index, a widely used measure of market volatility.

Mixed Performance

The hedge-fund industry is under pressure from capital outflows and poor performance. Man AHL’s hedge funds’ performance has been mixed in 2016, with the $4 billion AHL Diversified fund declining 0.9 percent and the $2.9 billion AHL Evolution fund gaining 5.4 percent in the first half.

During the three years through June, the funds recorded annualized gains of 8.9 percent and 13.5 percent respectively, according to a Man Group statement. The HFRI Fund Weighted Composite Index gained about 3 percent during that period.

Man Group hired former Millennium Capital Management money manager Abhijeet Gaikwad earlier this year to build a new quantitative-investment unit. The GLG unit that uses fundamental analysis 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.

Jonathan Sorrell

Source: Man Group Plc

Sorrell will keep his role as president of Man Group and remain on the board to focus on strategic and commercial areas including M&A. Jones is currently co-CEO of Man GLG and will also become an executive director. Man Group also named former Goldman Sachs trader Pierre-Henri Flamand as the chief investment officer of its GLG unit, which uses fundamental analysis to invest across asset classes.

The reshuffle "should help to tie-in key employees following the CEO change,” Tom Mills and Martin Price, analysts at Credit Suisse Group AG, wrote in a research note. “In particular, we think the retention of and expanded role for Jonathan Sorrell is important."

Man Group’s assets declined to $76.4 billion at the end of June from $78.6 billion three months earlier as investment losses totaled $1.5 billion. The stock was little changed at 112.5 pence at 12:45 p.m. in London, giving a decline of 36 percent this year. The Bloomberg Europe 500 Banks and Financial Services Index is down 21 percent in 2016.

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