Fink's hedging his bets at super Man

By GEOFF FOSTER FOR MAILONLINE
Updated:

 

STANLEY Fink, chief executive of Man Group, was - so far - the UK's highestpaid executive last year with a £3.3m bonus and total pay of £3.8m. But the City's fat-cat busters were relatively relaxed because this reflected the outstanding share price performance of the leading hedge fund manager during a bruising bear market.

Fink could be on for an even bigger pot this year if Man's clients continue to throw cash at its products.

Already up 36% since the start of the year, Man touched 1240p before closing 20p higher at 1228p after reporting the results of its latest launch - the Man AP Unison Series 1.

The fund raised an incredible £446m of client money, ahead of the £437m raised for the Series 5 Fund announced in early April, which was the largest previous global launch.

Top broker Merrill Lynch is a fan of Man. It is its favoured investment within the speciality finance universe. Its powerful distribution leaves it well placed to take advantage of the opportunities from growth in alternative investment.

Derivatives have spurred the growth of hedge funds. The latest estimate for hedge funds' assets is more than £360bn and there is little sign of a slowdown in growth.

Lupus Capital, the investment vehicle, firmed 1/4p to 75/8p on vague whispers of a bid approach. It is currently trying to sell Gall Thomson, the Norfolk supplier of marine breakaway couplings, which is its largest holding.

Other financials fared well, drawing strength from the overnight ruling of a US court in favour of Merrill Lynch, Goldman Sachs, Morgan Stanley and Credit Suisse First Boston against claims of faulty analyst research during the dotcom boom. Hopes that Lehman Bros and fund manager Neuberger will eventually climb into bed together also generated interest. Schroders firmed 5 1/2p to 634 1/2p and Amvescap 11 1/2p to 419p.

Edinburgh Fund Managers soared 16 1/2p to 90p on a bid approach. Isis Asset Management, which last year bought the fund management arm of Royal & SunAlliance, is tipped as the likely bidder. Isis closed 2p dearer at 187 1/2p.

Buoyed by Wall Street's late recovery overnight and early gain of 78 yesterday, the Footsie closed 43 points to the good at 4006.9. Sterling improved to $1.6630 with the euro at 69.2p and $1.1520.

Recruitment group Nestor Healthcare jumped 50p to 330p after receiving an approach that could lead to an offer at a premium price above 280p.

Possible bidders include management, private equity groups 3i or HG Capital, or recruitment giant Hays. Paul Saper, of consultants LCS, warns that government efforts to cut the use of healthcare agencies may slow long-term growth.

More than 24m Medisys shares changed hands and the close was 2 3/4p better at 19 3/4p. Quality tests of its Future safety syringe by its co-marketing partner Smiths Group have been passed. A clinical marketing launch is expected within two weeks.

Citigate Dewe Rogersen financial PR group Incepta eased 1/2p to 14 3/4p following a proposed one-for-five rights issue at 13p to raise £25.7m and help pay down debt of about £90m.

Computacenter rose 15p to 370p after revealing that first-half results would top expectations. It has won a £70m-plus contract with Abbey National, 6 3/4p up at 477p.

Recently-floated insurer Benfield fell 7p to 275p. It has sold 947,479 shares in Montpelier Re at $30.50 per share, raising £16.6m.

Reflecting prospects in Iraq, Aim-listed Petrel Resources improved 1 1/4p to 12p.

Profit-taking following good results left white van hirer Northgate 20p lower at 502 1/2p. Turnover rose 21% to £337.9m and pretax profits 16% to £36.6m.

Aberdeen Football Club closed as sick as a parrot at 42 1/2p, down 7p. It plans to cancel its admission to Aim to save costs.

Celltalk Group advanced 17% to 6p following annual results.

• AIM-listed energy group Northern Petroleum, which returned to the black last year, edged forward 3/8p to 2 3/4p. A subsidiary has been awarded two new licences in Hampshire and West Sussex. NP will hold a 50% stake and the probable recoverable potential oil reserves of the two licences is in the range of 35m-75m barrels.

Most watched Money videos