Man Group invests $50m with former Brevan team
A PORTFOLIO run by Man Group, the world’s biggest listed hedge fund firm, has invested $50m (£30m) in a new start-up fund run by three former Brevan Howard traders.
Man’s RMF Global Emerging Managers strategy has put money with 5:15 Capital Management, a US-based fixed income arbitrage firm set up this month and named after a song from The Who’s 1973 album Quadrophenia. Man will take a share of revenue from the firm, whose founders also worked together at Greenwich Capital Markets.
The investment comes after a period of hefty outflows from the battered hedge fund industry. Between October and June, investors have pulled around $300m from hedge funds, although the pace is now slowing.
Hans Hurschler, head of hedge fund ventures at Man, said the credit crisis has cut the number of investors trying to make money out of the type of arbitrage 5:15 focuses on.