Man Group plans hedge fund IPO

Man Group is planning to list its Man Dual Absolute Return Fund, a new closed-end hedge fund, on the New York Stock Exchange.

The London-based alternative assets provider filed its provisional prospectus with the US Securities and Exchange Commission on May 25. The fund will employ full long/short strategies as well as leverage and derivatives, according to the prospectus. Morgan Stanley has agreed to underwrite the IPO and all organisational costs, as well as promising that costs (other than sales) in excess of $0.04 per common share will be covered by Man Investments.

Shares in the fund, to be listed under the symbol MTY, will be offered at $20 per share, for minimum orders of 100 shares. Exactly how much the fund aims to target is not disclosed, but the fund anticipates using leverage of up to approximately a third of total managed assets (or 150% of net assets).

The Man Dual Absolute Return Fund aims to invest around 80-85% of its assets in the US QLS Strategy, a long/short equity strategy managed by Tykhe Capital, a New York-based hedge fund manager. The remaining 15-20% will be invested in the AHL Futures Strategy, a quantitative strategy operated by Man Group since 1989.

Man Group has an estimated $65 billion of funds under management. Its funds at March 31 stood at $61.7 billion.