Man Group invests $50m with former Brevan team

A PORTFOLIO run by Man Group, the world&rsquo;s biggest listed hedge fund firm, has invested $50m (&pound;30m) in a new start-up fund run by three former Brevan Howard traders.<br /><br />Man&rsquo;s RMF Global Emerging Managers strategy has put money with 5:15 Capital Management, a US-based fixed income arbitrage firm set up this month and named after a song from The Who&rsquo;s 1973 album Quadrophenia. Man will take a share of revenue from the firm, whose founders also worked together at Greenwich Capital Markets.<br /><br />The investment comes after a period of hefty outflows from the battered hedge fund industry. Between October and June, investors have pulled around $300m from hedge funds, although the pace is now slowing. <br /><br />Hans Hurschler, head of hedge fund ventures at Man, said the credit crisis has cut the number of investors trying to make money out of the type of arbitrage 5:15 focuses on.