Man Group to demerge brokerage

30 March 2007

British hedge fund firm Man Group has announced that it is to demerge its brokerage unit to concentrate on its core management business.

A majority interest in the firm's brokerage unit Man Financial will be listed on the New York Stock Exchange in the third quarter of 2007 and will be renamed MF Global.

Commenting on the firm's decision to break up its operations, Peter Clarke, Man's chief executive, said: "Separation will allow each business to focus even more effectively on their separate growth strategies and take advantage of the significant business development opportunities in each of their industries."

News of Man's plans comes as the bank this week announced that projected profits are set to meet analysts' predictions of £1.55 billion, with its assets under management rising to $61 billion from $50 billion last year.

London-based Man, which is the largest publicly funded traded hedge fund firm in the world and is the fourth-biggest player in the global futures market, will announce its full-year results on May 31st.

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