Tuesday, December 11, 2012

Growing Pains: The Darwinian Evolution Of The World's Biggest Publicly Traded Hedge Fund Firm




From Forbes: In 2008, Emmanuel “Manny” Roman, the co-chief executive of hedge fund firm GLG Partners, showed up to a conference of hedge fund managers and predicted that at least 25% of the world’s hedge funds would disappear “in a Darwinian process.”

Less than two years later, Roman sold GLG to Man Group, the world’s biggest publicly-traded hedge fund, for $1.6 billion. It was the signature move made by Man Group CEO Peter Clarke, who was looking for a way to increase growth. The deal eliminated a major independent hedge fund firm, GLG, whose three top bosses, including Roman, received hundreds of millions of dollars of Man Groups stock, which they agreed not to sell for at least two years. At the time, Clarke said that the underperformance of AHL, Man Group’s massive computer driven fund, had “not one jot” of influence over the decision to purchase GLG.

On Monday Man Group announced that Clarke’s time as CEO of the company was coming to an end. Since purchasing GLG, Man Group’s stock is down by 60% and AHL has a lot to do with the misery….

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