Man Group, one of the world's largest alternative investment managers, has announced an internal reorganisation that involves the merger of two of its core investment managers, Glenwood Capital Investments and Man Global Strategies.
The new combined business, to be called Man Glenwood Strategies, will bring together the investment expertise, manager relationships and research network behind the Glenwood model, with the operational experience, investor service and managed account infrastructure of Man Global Strategies, the company says.
The investment mandate of Man Glenwood Strategies is to protect and enhance investor capital by allocating across the hedge fund universe through a transparent risk-managed process, and will incorporate an increasingly active approach through the use of managed accounts.
According to Man, the use of managed accounts provides access to a deep pool of hedge fund managers across a wide range of strategies within an efficient and robust infrastructure, and enables greater transparency of the underlying trading positions provided by Man Glenwood Strategies, better control of volatility and liquidity terms, and direct control over the selection and monitoring of service providers such as prime brokers, valuation service providers and custodians.
Man Glenwood Strategies will offer a range of private and institutional investor products, many continuing to hold a core allocation to managed futures and its specialist manager AHL, but will also develop a range of style-based products and different multi-manager mixes.
The new business will manage Man's existing structured products, defined as all open-ended and capital-guaranteed Man Global Strategies products together with the Glenwood portfolios, according to the existing mandates.
Man Glenwood Strategies will be led by John Rowsell (photo), chief investment office and previously head of Glenwood, who says: 'One thing that is clear about the turbulence we have experienced in the financial markets in 2007 and 2008 is that we need to be more adaptable and ready to take advantage of the opportunities that will be available to investors.
'In bringing together Glenwood and MGS, we will combine the investment skills and relationships at Glenwood with the expertise developed at MGS, particularly the portfolio construction, risk management skills and processes developed for the managed account platform. In doing this, we will be well positioned to offer a range of actively-managed portfolios for our investors.'
Man Group chief executive adds: 'This proactive development is an example of our intention and ability to adapt to and profit from changing market conditions and create strong platforms for our investors at the forefront of the industry.'
At the beginning of November, Man had an estimated USD61bn in assets under management billion and employed more than 1,800 people in 13 countries.