Man Investments Launches Bayswater Macro Program

Man Investments, one of the world’s largest hedge fund providers, announced a new capital guaranteed product in its Man AP family.

Man AP Spectrum Ltd combines for the first time the proven performance of the AHL Institutional Program with a significant allocation to Bayswater, a San Francisco-based quantitative global macromanager. It also allocates capital to four Man Global Strategies style hedge fund portfolios to provide added opportunities for profit and diversification.

The Bayswater Macro Program achieved annualized returns of 14.4% between 1 August 2004 and 28 February 2007 while the AHL Institutional Program generated annualized returns of 17.1% in the time frame17 October 1995 to 28 February 2007.

“We are pleased to offer investors access to Bayswater as a core component of a structured investment product for the first time”, said John Morrison, Chief Executive of Man Investments, “thecomplementary nature of AHL and Bayswater will add a new dimension to the traditional Man AP portfolio”.

Both AHL and Bayswater are built on the philosophy that financial markets are inefficient and can be exploited by applying systematic and non-discretionary trading models. The difference is thatBayswater takes a longer term global macro approach while AHL aims to capture short and medium term trends on a wide range of global markets. The mix of the two managers in a portfolio is attractivesince they are complementary due to the low correlation (0.28 for the period 1 August 2004 to 28 February 2007) and have the potential to capture profits at different points in a market cycle in awide range of markets.

Man AP Spectrum Ltd is offered in a choice of USD and EUR bonds, each targeting mean annualized returns of 13-16% (USD bonds) and 11-14% (EUR bonds) for a mean annualized volatility of about 9-11%for both bond classes. Investors will also benefit from a capital guarantee provided by Merrill Lynch International Bank Limited, and a profit lock-in feature.

Alex Akesson

Contributing Writer
HedgeCo.Net
Email: [email protected]