Saturday, 25 March 2017
Last updated 21 hours ago
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.