Shake-up starts as Man Group hires Sorrell

STRICKEN hedge fund Man Group yesterday responded to poor performances and investor disquiet by dropping its finance chief.

Outgoing finance director Kevin Hayes has been replaced with immediate effect by Jonathan Sorrell, son of billionaire WPP chief executive Sir Martin Sorrell.

The fund, which is the world’s second largest by assets, has made the switch following a dire 12 months that has seen its share price fall by almost 70 per cent.

In April, Man shareholders warned the fund’s chief executive Peter Clarke that they expected an improved performance in six to nine months. Last week Man dropped out of the FTSE 100 blue-chip index.

There was speculation yesterday that Sorrell will be tasked with cutting staff costs while balancing investment performance.

“In his new position, Jonathan’s experience in financial markets, especially his deep working knowledge of the hedge fund industry, will be extremely valuable as we continue to develop in challenging world markets,” said Clarke yesterday.