New York (HedgeCo.Net) – Hedge fund giant Man Group has decided to sell it’s residual exposure to the collapsed US investment bank Lehman Brothers that it acquired in July 2011 from certain GLG managed funds.
The residuals are being sold for $456 million, UK newspaper The Guardian reports, Man may receive up to a further $5m if overall recoveries by the buyer exceed certain thresholds in the future. The Lehman claims were valued at $346m on the 30th June 2012.
The proceeds will be used to increase Man’s regulatory capital surplus and lift its cash position. The hedge fund giant also announced plans to cut costs by almost $200 million by the end of 2013.
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