The Man Group Wants A Long/Short Equity Shop, Looks Into Merger With Hedge Funds SAC Capital And Millenium

The Man Group wants to fill out the fund’s long/short equity space, says the Financial Times.

One of the options he seems to be considering is buying one of the two of the best long/short equity funds, SAC Capital or Millenium Partners.

Peter Clarke, the chief executive of the $40 billion Man Group, said on an earnings call:

“I’ve said before that that’s a gap that we would like the time to fill out in terms of having equity long/short capabilities within the firm.

“That’s something that we can access through others but over time would like to have some internal capabilities to deliver.”

He has met with both SAC Capital and Millenium Partners about possible distribution agreements or even takeovers, says the Financial Times.

Mergers within the hedge fund world are rare and no deal has been struck. Man Group might take only a stake in one of these funds or they might do nothing.

This is clear: Man Group’s 2009 performance was poor (down 16.9%) and it seems they think diversification might help them improve.

Both SAC’s and Millenium’s 2009 performance was very good: SAC finished up over 28% and (this is an estimate from a source inside a hedge fund that is not Millenium) Millenium finished up ~16%.

This would be big news and we will be following what happens here.

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