Man Sells Lehman Claims To Baupost

Nov 16 2012 | 12:24pm ET

The Man Group unloaded the last of its claims against Lehman Brothers Holdings to a unit of fellow hedge fund Baupost Group, earning itself a US$100 million profit.

Man said today that Baupost's Hutchinson Investors would buy the claims—the original size of which Man has never disclosed—for US$456 million. That's both a 32% premium above the portfolio's June valuation, and more than US$100 million more than Man paid for them when it bought them from a GLG Partners subsidiary a year-and-a-half ago.

Man bought GLG itself two years ago.

Man moved to sell off the claims as investors are increasingly optimistic about chances for recovery in the Lehman case following a series of agreements earlier this year.

In addition to the up-front cash, Man could get another US$5 million from Hutchinson if recoveries exceed certain thresholds.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...