HEDGE fund manager Man Group sold its stake in successful rival BlueCrest Capital back to the firm for $633m (£389m) yesterday.
Man, which bought the 25.5 per cent stake in 2003, made about a $250m profit from the sale, it said.
The sale is expected to add more than $500m to Man’s regulatory capital, which stood at $300m at the end of December.
Man’s chief executive Peter Clarke praised its “long and successful relationship” with BlueCrest and said the sale meant Man could focus on its core investment management business. “This transaction crystallises a significant profit for shareholders on our original investment.”
The sale follows Man’s $1.6bn merger with rival GLG Partners last year to create a giant $63bn hedge fund manager. Analysts said the merger reduced Man’s reliance on BlueCrest, enabling it to sell its stake.
Guernsey-based BlueCrest, which manages $25bn of hedge funds, also bought the outstanding stake owned by its now-retired co-founder Bill Reeves. Chief executive Mike Platt said the company was now fully-owned by its working partners.