Tuesday, 21 October 2014
Last updated 1 hour ago
Oct 11 2012 | 1:46pm ET
BlackRock and a group of investors is mulling a £2.5 billion bid for the Man Group, a British tabloid reports.
According to the Daily Mail, BlackRock and "friends" might be readying an offer for the publicly-traded hedge fund giant, which has hit on hard times. BlackRock owns 9.35% of Man and has long been mooted as a possible bidder for the firm.
A £2.5 billion offer would represent a huge premium to Man's current share price. The offer would be about £1.40 per share, Man has been trading at below £0.90 per share and as recently as June was as low as £0.61.
Man shares shot up to as high as £0.96 per share after the Mail's report yesterday, but ended trading today back below £0.90. And while the rumors put some juice in Man shares, some remain skeptical.
"We do not see the logic of acquiring a company whose funds, in our opinion, are underperforming key benchmarks and experiencing net outflows," RBS Capital Markets analyst Peter Lenardos wrote in a note yesterday. "Further, we continued to believe that AHL," Man's flagship strategy, "is priced above competitors despite having weaker performance." Lenardos pronounced a BlackRock bid "unlikely."
"Man will provide the market with a third-quarter update on Oct. 18," the Mail wrote. "It could possibly be its last as an independent company."
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...