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 on Liquid Alternatives

May 25 2016 | 5:07pm ET

The popularity of liquid alternatives strategies has blossomed in recent years,...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...