Those who thought that the hedge fund business was
a low value buiness due to volatile earnings and a reliance on
key traders are thinking again writes Paul Taylor
Eyebrows were raised when Man Group paid $183 million in
cash and paper for a 25% stake in BlueCrest Capital Management
at the end of November. Rivals suggested Man had overpaid for
its stake in the fixed income and credit group founded by Mike
Platt and Bill Reeves, two London-based dealers who quit JP
Morgan three years ago.
However, as the dust settles on the deal, a number of people
are starting to suggest that Man paid a fair price given
BlueCrest's track record, potential for growth and available
capacity. They argue that BlueCrest could provide Man with
another engine for their hugely successful structured product
business in the same way that the AHL managed futures strategy
has been the powerhouse...