Thursday, 31 July 2014
Last updated 19 hours 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.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…