Key Takeaways
- • Man Group's Numeric Investors emerging-markets hedge fund delivered 7.75% returns year-to-date through June 2016, significantly outperforming the eVestment emerging markets hedge fund index at 5.1% for the same period.
- • The $1 billion fund, which employs long and short equity strategies, gained 5.5% in June alone, demonstrating sustained momentum during a volatile market environment.
- • Man Numeric's emerging-markets group manages $2.6 billion in assets as of March 31, 2016, and is led by Ori Ben-Akiva, head of international strategies, with the strategy having launched in 2010.
- • The Boston-based Numeric Investors division, acquired by British hedge fund manager Man Group in 2014, operates within a broader platform managing approximately $19.4 billion, while parent company Man Group oversees $78.6 billion in total assets.
- • The fund's strong performance contrasts sharply with weakness elsewhere in Man Group's portfolio following the UK Brexit referendum; the firm's GLO Alpha Select fund declined 3.8% year-to-date after losing 3.5% on the day after the Brexit vote.
Summary
An emerging-markets hedge fund operated by Man Group's Numeric Investors subsidiary has delivered exceptional returns in the first half of 2016, positioning itself as a standout performer amid broader market uncertainty. Through June, the $1 billion long-short equity fund generated 7.75% returns for the year, substantially ahead of the eVestment emerging markets hedge fund index, which gained 5.1% over the same period. The fund's June performance alone—a 5.5% monthly gain—underscores the consistency of its outperformance during a period when many hedge funds struggled with elevated market volatility.
Numeric Investors, headquartered in Boston, was acquired by Man Group in 2014 and has since become a material contributor to the parent organization's alternative investment platform. The emerging-markets division, which oversees $2.6 billion in assets as of March 31, 2016, is led by Ori Ben-Akiva, head of international strategies. The strategy launched its first fund in 2010 and has since developed a track record spanning six years. The broader Numeric Investors platform manages approximately $19.4 billion, representing a substantial component of Man Group's $78.6 billion in total assets under management.
The performance divergence between Numeric's emerging-markets fund and other Man Group vehicles highlights the disparity in positioning and strategy execution across the firm's portfolio. Man Group's GLO Alpha Select fund experienced significant losses following the UK's Brexit referendum vote in late June, declining 3.5% on the day after the referendum result and ending the year down 3.8%. This weakness in flagship strategies elsewhere in the Man Group ecosystem contrasts sharply with Numeric's steady execution in emerging markets, suggesting the division's long-short stock-picking approach and emerging-markets focus proved more resilient during the post-Brexit market disruption. As of the article's publication, Man Group declined to provide updated performance figures through supplementary statements.
Numeric Investors, headquartered in Boston, was acquired by Man Group in 2014 and has since become a material contributor to the parent organization's alternative investment platform. The emerging-markets division, which oversees $2.6 billion in assets as of March 31, 2016, is led by Ori Ben-Akiva, head of international strategies. The strategy launched its first fund in 2010 and has since developed a track record spanning six years. The broader Numeric Investors platform manages approximately $19.4 billion, representing a substantial component of Man Group's $78.6 billion in total assets under management.
The performance divergence between Numeric's emerging-markets fund and other Man Group vehicles highlights the disparity in positioning and strategy execution across the firm's portfolio. Man Group's GLO Alpha Select fund experienced significant losses following the UK's Brexit referendum vote in late June, declining 3.5% on the day after the referendum result and ending the year down 3.8%. This weakness in flagship strategies elsewhere in the Man Group ecosystem contrasts sharply with Numeric's steady execution in emerging markets, suggesting the division's long-short stock-picking approach and emerging-markets focus proved more resilient during the post-Brexit market disruption. As of the article's publication, Man Group declined to provide updated performance figures through supplementary statements.
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