Man Sells Lehman Claims To Baupost

Nov 16 2012 | 1:24pm 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

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...

 

FINalternatives Trending

From the current issue of