“All the things they are doing are raising the barriers to entry,” Mr. Clarke said. “It gives us a very significant London- based asset management capability, moving a center of gravity into the EU is helpful.”
Reversals in fixed-income, currency and metals markets made 2009 the worst year since l987 for funds similar to Man Group’s AHL, according to Fairfield, Iowa-based BarclayHedge, which has tracked so-called trend-following funds for 25 years. Man AHL Diversified dropped 17% in 2009 and is little-changed this year, according to data compiled by Bloomberg. AHL’s performance wasn’t a factor in deciding to buy GLG, Mr. Clarke said today.
“Not one jot,” Mr. Clarke said when asked during a conference call today. “Our investors have been asking for a broader partner, we’re very happy with AHL’s performance, this isn’t a reaction.”
“This is a transformational step for GLG,” Noam Gottesman, chairman and co-CEO of GLG, said in a news release. “We have known Man for many years and can be certain that our two businesses are highly complementary, both focused on delivering long-term performance but each with differing client bases and uncorrelated investment strategies. The combination of Man’s outstanding distribution and structuring capabilities together with our industry leading investment teams will benefit all stakeholders, particularly investors in our funds whose interests will be exceptionally well served from within the combined group. The independent committee of our board has unanimously recommended acceptance of the cash merger to our shareholders, and as a management team we are looking forward to working with our new colleagues at Man following the close of this transaction.”
Man Group was advised by Perella Weinberg Partners LP with Bank or America Corp. and Credit Suisse Group AG.