Tuesday, 21 April 2015
Last updated 1 min ago
Jul 24 2012 | 1:15pm ET
Amidst billions more in redemptions, the Man Group has pledged to more than double its cost cuts as it struggles to rebuild its share price.
The publicly-listed hedge fund said it would reduce expenses by an additional US$100 million over the next year-and-a-half. Those cuts will be made on top of US$95 million in cuts announced in March.
"We have made progress in the last six months to address the costs across our business," CEO Peter Clarke said. "The changes we have announced today, together with progress we have already made, position us well to protect and rebuild shareholder value."
Man said it would eliminate jobs and reduce its sales of guaranteed products linked to its troubled flagship, AHL, which have received a tepid response from clients but on which Man pays high fees. It is unclear what jobs, or how many, are at risk. Man will also cut back on its business in some countries.
The new round of money-saving measures came as Man said that clients redeemed US$9.6 billion against just US$7.2 billion in sales in the first half. That net outflow, US$2.4 billion, combined with poor performance, pushed Man's assets down to US$52.7 billion from US$59 billion at the end of the first quarter.
The firm said its first-half pretax loss was US$164 million, due to US$91 million in writedowns from its purchase of GLG Partners, as well as a US$142 million writedown on its fund of hedge funds business. But GLG won't only be costing it money, Man hopes: Clarke said the firm would ramp up its efforts to sell open-ended products tied to GLG hedge funds.
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…