Man Group to launch hedge fund IPO

Hedge fund manager Man Group plans to list one of its hedge funds on the NYSE this fall – and today announced a strong annual profit. The world's largest manager of hedge fund assets said that it will launch the Man Dual Absolute Return Fund on the New York Stock Exchange in September, offering shares at $20 each for minimum orders of 100 shares, according to a filing the Securities and Exchange Commission. London-based Man did not say how much money it hopes to raise through the IPO. The launch follows Chicago-based Fortress Investment Corp.'s February initial public offering, which was a first for a hedge fund (InvestmentNews, February 12) . Today, Man announced that it posted a 27% increase in profit for the year ended March 31, with net income increasing to $1.3 billion from $1 billion in the year-ago period, after the company increased its funds under management. Funds under management increased 24% to $61.7 billion, a sharp increase from the $49.9 billion recorded in the year-ago period. Individual investors account for about $36.6 billion of the funds under management while institutional investors account for $25.1 billion of the assets. Man also said it appointed Kevin Hayes as finance director, replacing Peter Clarke, who took over for chief executive Stanley Fink, who stepped down in April.