Man, the world's largest listed hedge fund group, has sold its 25% stake in rival BlueCrest for $633m.
The sale - to BlueCrest's partners - will generate a profit of around $250m on an investment made by Man in 2003. The proceeds will be used to boost Man's regulatory capital surplus. Peter Clarke, Man's chief executive, said the sale was part of its strategy to focus on its own investment management activities:
We have had a long and successful relationship with BlueCrest and this transaction crystallises a significant profit for shareholders on our original investment. It also generates substantial cash, further enhances our strong financial position and allows us to continue developing our core investment business.
The sale follows last year's acquisition by Man of US rival GLG. In the market Man's shares have dipped 4p to 241.5p on the news, but analyst Philip Middleton at Bank of America Merrill Lynch said the move was a sensible one:
It makes sense for Man to focus all its management energy in building its core business.
