19 Jan 2012
Noam Gottesman, a founding partner and principal of GLG Partners, has stood down as co-CEO of GLG and has taken on the role of non-executive chairman of the firm’s business in the US.
Gottesman moved to New York in 2009 to build GLG’s US business and continued in that role following its $1.6 billion acquisition by Man Group in 2010. He will continue to help the combined group build its US operations, leaving ex-GLG executive Manny Roman to continue as sole CEO of GLG and chief operating officer of Man Group.
The announcement coincided with Man reporting that funds under management at 31 December 2011 dipped nearly 10% to $58.4 billion over the quarter. The decline marked a further retreat from the $69.1 billion the group managed shortly after the completion of the GLG buyout.
Sales in the quarter were $3.1 billion but the pronounced volatility in the second half of 2011 meant that investor redemptions soared to $5.6 billion. This produced a net outflow of $2.5 billion. Managed futures fund giant AHL lost 7.7& in the quarter, contributing to negative investment movement of $1.5 billion, though GLG funds showed positive overall performance.
Additional negative movements of $2.1 billion were recorded. Product deleveraging accounted for $1.6 billion of this with FX translation effects costing $300 million.
Man has reacted to the slide in assets and the tough performance environment by announcing a further $75 million in cost reductions. Two-thirds of this will be realised in 2012 with the remainder in the following year. It confirmed that previously announced savings of $40 million relating to outsourcing and reduced finance expense are on track for 2012.
Man’s share price jumped over 10% following the trading update, but at around118 pence remain mired at long-term lows. Nonetheless Man’s financial position is robust, with net tangible assets of $1.6 billion, net cash of $600 million and total available liquidity resources of $3.2 billion. After the repurchase of shares and the payment of the interim dividend, the regulatory capital surplus on 31 December 2011 was around $850 million.
Gottesman moved to New York in 2009 to build GLG’s US business and continued in that role following its $1.6 billion acquisition by Man Group in 2010. He will continue to help the combined group build its US operations, leaving ex-GLG executive Manny Roman to continue as sole CEO of GLG and chief operating officer of Man Group.
“We thank Noam for his contribution in helping to integrate GLG into Man,” said Jon Aisbitt, chairman of Man Group. “He has outstanding entrepreneurial talents and market expertise which will continue to be available to Man in his new role as non-executive chairman of GLG (US).”Gottesman continues to own a stake in Man Group and has investments in its funds. Both interests are covered by share lock up arrangements entered into at the time of GLG’s acquisition. .
“The first priority following the combination of Man and GLG was to complete the integration of the two businesses,” said Gottesman. “This has now been successfully achieved and therefore I have decided to move to a non-executive role. This will give me the time to develop a portfolio of non-competing business and other interests.”
The announcement coincided with Man reporting that funds under management at 31 December 2011 dipped nearly 10% to $58.4 billion over the quarter. The decline marked a further retreat from the $69.1 billion the group managed shortly after the completion of the GLG buyout.
Sales in the quarter were $3.1 billion but the pronounced volatility in the second half of 2011 meant that investor redemptions soared to $5.6 billion. This produced a net outflow of $2.5 billion. Managed futures fund giant AHL lost 7.7& in the quarter, contributing to negative investment movement of $1.5 billion, though GLG funds showed positive overall performance.
Additional negative movements of $2.1 billion were recorded. Product deleveraging accounted for $1.6 billion of this with FX translation effects costing $300 million.
Man has reacted to the slide in assets and the tough performance environment by announcing a further $75 million in cost reductions. Two-thirds of this will be realised in 2012 with the remainder in the following year. It confirmed that previously announced savings of $40 million relating to outsourcing and reduced finance expense are on track for 2012.
“Trading conditions have been tough for Man in the second half of 2011,” Peter Clarke, chief cxecutive of Man, said. “Investment performance varied significantly across styles, with market volatility and reduced market liquidity impacting trading opportunities. Although some of our funds performed strongly and sales held up well, we experienced a net outflow in the last two quarters, albeit with reduced redemptions in the final three months.”
Man’s share price jumped over 10% following the trading update, but at around118 pence remain mired at long-term lows. Nonetheless Man’s financial position is robust, with net tangible assets of $1.6 billion, net cash of $600 million and total available liquidity resources of $3.2 billion. After the repurchase of shares and the payment of the interim dividend, the regulatory capital surplus on 31 December 2011 was around $850 million.
“Looking ahead, our unique breadth of investment styles positions us well to capture positive performance as markets normalise and trading opportunities re-emerge,” said Clarke. “With a strong capital base and continued focus on efficiency and performance, we are well placed to benefit when investor demand improves.”
