Ex-Man CEO's New Firm Retools After Losses

Oct 4 2013 | 12:19pm ET

Former Man Group chief Stanley Fink is finding his second round running a hedge fund a good deal less successful than his first.

International Standard Asset Management, where Fink serves as CEO, has seen its assets under management fall by nearly half over the past year-and-a-half, Bloomberg News reports. The London-based firm, which Fink joined just months after retiring from Man in 2008, has just US$635 million in assets, all but $50 million of it in its flagship quantitative strategy, Fink said, a far cry from the $5 billion he's said he'd like to see the firm manage.

ISAM has suffered from both losses and redemptions over the period, leading it to shake up its staff and increase the number of markets it invests in. "It's a bit like when you loses a few races in Formula 1," Fink told Bloomberg. "You realize your car wasn't as fast as you thought so you go back and re-engineer every part. The system is now very leading edge."

Despite the losses—ISAM's flagship Systematic Fund is down 14% this year and lost 17% last year and 2.7% in 2011—Fink said the firm remains profitable.

"We business-planned for drawdowns, which are, sadly, part of the business," he said. "In a period when performance is not good, there will not be significant bonuses. Staff are grown-up enough to know that."


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...