Man Plans NYSE-Listed Hedge Fund

May 30 2007 | 11:52am ET

The Man Group is set to transplant a capital-raising strategy proven in Europe to American shores.

The Man Dual Absolute Return Fund will list on the New York Stock Exchange as a closed-end fund, according to a Friday Securities and Exchange Commission filing. An undetermined number of shares will be sold for $20 a piece, with a minimum order of 100 shares.

The fund is actually something of a fund of funds: Its assets will be invested by two managers. Upwards of 80% of the fund’s assets will be the charge of New York-based quantitative manager Tykhe Capital, which will employ a long/short equity strategy. The remainder will go to Man’s own AHL Core program, a managed-futures strategy.

The firm’s U.S. arm, Chicago-based Man Investments Corp., is the investment adviser to the fund, which can be levered up to 50%. Morgan Stanley will underwrite the IPO.

The NYSE declined comment, saying the listing is not yet on its calendar, as did Man, citing SEC quiet period regulations.

The listing is Man’s first of a hedge fund product in the U.S., though the practice is fairly common in Europe. Man—a public company already listed in London—is not selling its own shares on Wall Street, but shares of a closed-end fund employing hedge fund strategies.

What it is not doing is heeding the warnings of former Securities and Exchange Commission Chairman Harvey Pitt, who has said listed hedge funds will lead to government regulation.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of