WEST PALM BEACH, FL (HEDGECO.NET) – Hedge fund Man Group, the world’s largest listed hedge fund manager won investor approval for a stock split 6-for-1 on Tuesday after earlier announcing a rise ofmore than $5 billion in assets under management and managed funds of more than $54 billion at the end of June. Up from $49.9 billion three months earlier, despite the volatility in equity markets.
In an update to investors at its annual meeting, Man said its brokerage unit, Man Financial, had experienced record trading volumes since the end of March. Net redemptions amounted to $1.5 billion in the quarter, with private investors withdrawing $600 million. Man Group also said in a statement that the share split will apply to its 450 million existing ordinary shares with a face value of 18 U.S. cents each, dividing them into six ordinary shares of 3 cents each.
The split is designed to improve share trading liquidity and will not affect the percentage exposure of shareholders in the company, Man Group chairman Harvey McGrath told the meeting.
“We are aware of press and market speculation on that issue and the Board has taken no decisions to separate or spin off the brokerage business. We are taking preparatory steps to give us flexibility to take a decision … that is in the shareholders’ interests.â€Â
Man Financial announced in June their plan to appoint Amy Butte as its chief financial officer. She hinted that Man Group may be preparing a partial float of the brokerage, while retaining a majority stake in the unit, but no decisions had been taken on the future of Man Group’s brokerage arm.
Amy S. Butte was previously the New York Stock Exchange Executive Vice President, prior to joining the Man Group. Ms. Butte was most recently Chief Strategist and Chief Financial Officer with Credit Suisse First Boston’s financial-services division. She serves on the Corporate Advisory Board of the New York City Ballet, and is an active member with the New York Women’s Foundation.
Man’s prospects are buoyant, in part because hedge funds, which can make money in different market conditions, are well-placed to profit from current equity volatility and investors’ desire to protect capital. Private investors account for $32.5 billion of all assets, and institutional investors make up $21.5 billion.
Alex Akesson
Contributing Writer
HedgeCo.Net
Email: [email protected]
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