Monday, 31 August 2015
Last updated 8 min ago
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.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…