Hedge Fund Manager Tops UK Asset Growth Ranking

by Carla Johnson, Investors Offshore, London

27 August 2002

A report from PAM, a directory of UK fund managers, on assets under management in the UK in 2001 has three hedge fund managers in its top ten firms ranked by growth in assets.

The rankings are topped by Man Group, which saw assets rise 87.5% from UK£4bn to 7.5bn, although total assets under management in the sector fell by 11% during the year.

James Anderson, editor-in-chief of PAM, says 2002 will be the same: "Man and GAM have both been expanding their operations in 2002 and recruiting extra staff. That implies they are likely to be showing very strong growth in new business for the year."

At Man Group's Annual General Meeting a few weeks ago, Chairman Harvey McGrath, said: 'Group funds under management at today's date are estimated to be around $21 billion. This total includes $9 billion for RMF, up from $8.5 billion, and $11.9 billion for the balance of Man Investment Products, up from $10.7 billion at 31 March 2002.'

Man Group acquired Swiss-based RMF in June for $833m in cash and shares, and claims that it has thus become the biggest hedge fund manager in the world. Man paid $510m in cash and the balance in newly issued shares for RMF.

At the other end of the scale, the report lists those firms showing largest falls in assets under management. Firms with losses between 20% and 30% include Baring Asset Management, Clydesdale Bank, Killik & Co Stockbrokers, Lazard Asset Management and Cazenove Fund Management.

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