Moody's Cuts Man Debt To Near Junk

Aug 21 2012 | 12:24pm ET

Moody's Investors Service slashed Man Group's credit rating to just above junk after the hedge fund giant's assets under management dropped by a quarter over the past year.

The world's largest publicly-traded hedge fund's debt is now rated Baa3, the lowest investment grade, Moody's announced today. The ratings agency cited "continuing challenges in the company's core business" and warned "there will be little if any retained earnings given Man's dividend policy and ongoing earnings pressure."

Man disputed Moody's pessimism, saying it "remains financially robust and enjoys a strong position in the market."

"Man has made considerable progress in addressing its cost base and expanding its investment management capabilities," it said.

Man's assets dropped from US$71 billion to US$52.7 billion in the year-ended June. Its stock price has been battered and its flagship AHL strategy has performed poorly. The firm announced plans to impose nearly US$200 million in cost cuts this year.


In Depth

OmniQuest Capital: Why Funds of Hedge Funds Work

Aug 11 2016 | 4:47pm ET

There have been few sectors of the alternative investment universe under as much...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...