WEST PALM BEACH, FL (HEDGECO.NET) – The world’s largest listed hedge fund, Man Group, has more than $48 billion in assets under management when announced last march. They are due to announce on June 1 a near doubling of profits for last year. Reuters surveyed 10 fund analysts and the average forecast showed Man’s profits before tax and exceptionals for the year ending March 2006 at $1.27 billion compared with $863 million last year.
Reuters said, “The 2006 numbers have already been flagged … We know they will be higher than the guidance they gave earlier this year,†one analyst said. “The market will be looking for some color on current trading.†The median forecast for performance fees earned last year is $420 million, nearly 3 times the $119 million reported for the year ending March 2005.
Regarding the company’s recent gains, Citigroup said in a research note that, “Despite recent strong run, we see further upside over next 12-months as the market incorporates a higher valuation for enlarged brokerage business. If the market fails, Man could look to IPO the brokerage division in the U.S.â€Â
Recently The New York Post reported that Man was one of the final bidders for Dutch Bank ABN Amro’s futures and commodities trading division, which this week was bought by Swiss bank UBS for $386 million in cash.
Stanley Fink, Man’s chief executive, told reporters, “We never confirm on or off the record whether we did bid, but certainly we’re always very mindful of shareholder value when we look at any transaction. …We were surprised at the price it went for.â€Â
Alex Akesson
Contributing Writer
HedgeCo.Net
Email: [email protected]
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