Man Rolls Out Quantitative Sovereign Fund

Sep 4 2012 | 10:23am ET

The Man Group has put its flagship strategy to work on sovereign debt.

The troubled hedge fund giant teamed up with Nomura Holdings to launch the Systematic Fixed Income Fund. The new vehicle employs algorithms from Man's AHL Strategy to the low-yield environment of government bonds, hoping to profit from spot distortions and trends in the space.

Man hopes the fund, which debuted in July with $50 million in outside capital, can manage double-digit returns, following modifications to AHL designed to limit exposure to bond futures.

"Yields are also at extremely low levels," Sandy Rattray, chief investment officer of Man Systematic Strategies, told Reuters. "If you're long bonds, you certainly know what your upside is."

The Systematic Fixed Income Fund will invest in interest rate and bond futures, currencies and interest rate swaps. The vehicle, announced in April, will also trade emerging market currencies when it considers the timing right.


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