BlackRock not taking over Man Group, Launching Asian Corporate Bond Hedge Fund
BlackRock, the world’s largest money manager, has taken a substantial stake in the Man Group, the world’s largest publicly listed hedge fund, prompting speculation that there might be a takeover in the works.
According to a regulatory filing cited on FINalternatives, BlackRock, which manages $3.35 trillion in assets, now owns more than 10 percent of the Man Group, which itself manages $40 billion. Market whispers helped Man’s stock to achieve the biggest gain it has seen in over four months. In fact, Man shares have seen a decline of 22 percent this year due to client outflows and poor returns from its flagship family of funds AHL.
Britain’s Daily Mail reported last week that market rumors have suggested BlackRock is interested in acquiring London-based Man. The tabloid suggested that BlackRock, which bought Barclays Global Investors, the world’s 10th-largest hedge fund manager, back in December, lacks a big fund of hedge funds business, which Man would provide. However, these rumors were quashed last Wednesday by a person close to BlackRock in an article in the New York Times DealBook.
Instead, BlackRock has announced that next month it will be launching The BlackRock Asian Credit Hedge Fund which will trade corporate bonds and options, buying both investment grade and high-yield securities. The new fund will be managed by Neeraj Seth, head of Asian corporate credit at New York-based BlackRock. This new fund is one of a small but growing number of Asian fixed-income funds. According to FINalternatives, such funds account for just 2% of Asia’s hedge funds.
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