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Reuters take on this latest development.... ------------------ UPDATE 2-Man Group says in talks to buy Numeric 29 May 2014 09:37 Boston-based Numeric has been up for sale since early 2013 Firm manages more than $13.9 bln Would diversify Man's quant offering, boost U.S. presence Man shares up 3 pct, lead FTSE midcaps (Adds analyst reaction, updates shares) By Simon Jessop LONDON, May 29 (Reuters) – Man Group <EMG.L> said it was in talks to buy U.S. asset manager Numeric Holdings and diversify its quantitative fund offering, giving the UK hedge fund manager's share price a boost. A deal for Boston-based Numeric, part-owned by private equity group TA Associates and up for sale since early 2013, would broaden a quant fund stable currently focused on Man's flagship AHL computer-driven funds. [ID:nL1N0C0C9X] It would also boost its presence in the United States, the biggest hedge fund market in the world, as well as its foothold in the institutional market, dealing with clients such as pension funds, which are driving growth in the broader industry. "This transaction would further diversify Man away from AHL and is consistent with Man's strategy to acquire a US-based asset manager," said RBC Capital Markets analyst Peter Lenardos. "However, given the extremely limited information available, especially on profitability and price – we reserve judgment until more details emerge." Man, which manages more than $55 billion in assets, has restructured extensively after being hit by poor performance and heavy outflows of client funds during the financial crisis, after which it bought fund of fund and advisory group FRM and alternative asset manager GLG. Phil Dobbin, analyst at Espirito Santo Investment Bank, which acts as market maker for Man and has a "sell" rating on the stock, said using Man's assets under management to market capitalisation as a guide, Numeric could be worth $430 million. "But we don't have profitability figures for Numeric and have to remember Man has always traded at a high market cap to AuM (assets under management)," he said in a note to clients, adding that such a valuation of Numeric would require Man to use up its surplus capital. Shares in Man recovered from a quiet start to rise 3 percent by 0740 GMT and lead gainers across the FTSE mid-cap index <.FTMC>. In a statement on Thursday, Man said discussions with Numeric, founded in 1989, with 74 employees and which manages more than $13.9 billion in assets, were ongoing and may or may not lead to a transaction. It declined to comment further. Quantitative trading strategies use computer-based algorithms to determine when to buy and sell an asset. (Reporting by Simon Jessop; editing by Huw Jones and John Stonestreet) ((simon.jessop@thomsonreuters.com)(+44)(0)(207 542 5052)(Reuters Messaging: Reuters Messaging: simon.jessop.thomsonreuters.com@reuters.net)
dduck ...AHL useless last year? That was nothing! Take a look at the charts for 2011/12 - enough to make grown men weep.
Many thanks for your thoughts. I opened a 10k CFD about a couple of hours ago - more motivated by greed than logic! But it is reassuring to subsequently read your logic-based opinions, for which I am grateful. Hopefully it is cock-up rather than conspiracy that delayed the positive news on AHL - unless Manny is shorting EMG... Gulp! Onwards and upwards.
Any thoughts on where the bottom is for this retreat? I might have to swallow my pride and average down (yet again) but I'd prefer not to do this if the sp has some way to go, before it finds the floor. Many thanks.
Hi, glad you were able to glean some positives from Citigroup yesterday! I was disappointed as they still have it as a sell, albeit up from 85p to 88p. Well done for averaging down. I have played that game a few times and have reduced from plus to £3 to £1.48. Not sure I can bring myself to buy any more. ATB
I'd hate you to think that you were just chatting to yourself...! Thanks for your thoughts / musings, etc. As one who bought in a few years ago when EMG was around £3 and still have average well above present sp, my hopes for this one are not great. It is proving to be a long haul out of the doldrums and Manny does not appear to be the white knight that we thought he'd be - certainly his effect on sp has been muted. Maybe a uplift lies just around the corner. It would be nice to think so. Anyway, good work - keep it up!
Thanks for your post. I always reading your contributions, both here and on LLOY. Yes - I have more of the little bugg#rs than I am prepared to admit to! I've learned the hard way with this one about the perils of trying to catch falling knives, averaging down and all that stuff. I came close to selling during the brief rally a few months back. I had a target of 150 which, of course, never came. I should have just taken the hit. Another learning experience from the (EMG) school of hard knocks. I don't need to sell, so I'll just wait until this one improves again. ATB
Thanks for your latest thoughts. Just have to hope that they can close-out those AHL funds soon and start to climb back up again. Lucky you (with your average).... I first started buying EMG three years ago when sp was above £3. I have got my average down to 140 but still way off the break-up value. Can't bring myself to buy more, so just have to sweat it out. GL
Charterhouse lining up funding to purchase G4S unit Mon, 21st Oct 2013 12:48 London-based Charterhouse approached banks and its investors over financing a possible 1bn pound deal to buy G4S' cash-solutions business unit, according to three people familiar with the matter who asked not to be identified because the talks are private. G4S, the world's largest security-services provider, is aware of the proposal and discussed the sale option internally, said one of the people, according to Bloomberg News. Shares of the company are now rising by 3.72% to the 251p mark and were at the top of leader-board as of 12:48.
Many thanks. Your insights are much appreciated, as ever. I shall try to continue to hold my nerve...!
With AHL losing money for 3 of the past 4 years, I am still bemused that EMG continues to struggle on with it. Ditching it and going with the super-GLG model would appear to be the way forward, but something appears to be holding them back; instead, the drift from AHL to GLG appears to lack any sense of urgency. Can you make sense of it, Jack D.? Thanks.
Many thanks for sharing these insights - much appreciated. Keep them coming!
Anyone know whats going on here? Currently up over 6%. Nice if this can the start of a re-rate but we have had so many false dawns, it is difficult to get too excited. GLA
Oct 9 (Reuters): Alent <ALNT.L>: Credit Suisse raises price target to 430p from 420p; rating outperform
BRIEF-Dixons Retail says deal with Mutares for sale of PIXmania signed 27 September 2013 07:00, updated 27 September 2013 07:16 Sept 27 (Reuters) – Dixons Retail PLC <DXNS.L>: Agreement with Mutares <MUXG.BE> for sale of PIXmania signed Signing follows completion of consultations with the relevant works councils Completion of the transaction is expected to take place at the end of December 2013 Transaction is expected to be accretive to underlying earnings for Dixons Retail in the current financial year Dixons announced the agreement on Sept. 5 [ID:nL6N0H10LC] Source text for Eikon: [ID:nRSa0413Pa]
Thanks for posting that link. Stunningly awful performance by the various AHL funds. I thought that Manny was supposed to get a grip of this useless black box of tricks, but he has achieved nothing. Considering algorithm-based trading is supposed to be the way to make money these days, AHL's lamentable performance appears as a complete mystery to me, and the wonks at EMG so it would seem. Time they stopped poncing around with the Man Booker prize and got back to making money, methinks.
Broker upgrades: DXNS Dixons Retail Plc JP Morgan Cazenove Neutral Neutral 43 46 DXNS Dixons Retail Plc Citigroup Buy Buy 53 58 plus 'Reiterate' statement: DXNS Dixons Retail Plc Nomura Buy Buy 60 60
...I can think of a few more: AFR, BLVN (...not sure I dare mention VOG). It is good to see this one picking up so rapidly. Just have to hope that APR's days of diving back down into the 600s are behind us.
Answering my own question..... It is probably on the back of this: 'FTSE 100: Aggreko gains ahead of Q2 update Temporary power and temperature control supplier Aggreko was making strong gains ahead of its second-quarter trading update tomorrow morning. While JPMorgan Cazenove kept its 'neutral' rating on the stock on Friday, analysts said that given the stock has underperformed so far this year and trades towards the bottom-end of the recent range, "a positive statement would be met with strength". ' Let's hope that Aggreko posts good results tomorrow and that we have another decent rise, in sympathy.
Anyone know what triggered today's hike. There has been one broker upgrade (of sorts): 'Peel Hunt raises target price to 750p from 600p; rating sell' ...which hardly amounts to a ringing endorsement. Interested in whether this is being played by MMs, or is there any substance to this rally.