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A little-known hedge fund is quietly killing it

Reported by Business Insider
Jul 8, 2016· 2 min read
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Key Takeaways
  • • Man Group's Numeric Investors emerging-markets hedge fund returned 7.75% year-to-date through June 2016, outperforming the eVestment emerging markets hedge fund index by 270 basis points (5.1% YTD return).
  • • The $1 billion long/short equity fund posted a strong 5.5% gain in June alone, demonstrating consistent monthly performance amid broader market volatility.
  • • Numeric Investors, acquired by Man Group in 2014, manages approximately $2.6 billion across its emerging-markets strategies as of March 31, 2016, with the group overseen by Ori Ben-Akiva.
  • • The fund's outperformance contrasts sharply with other Man Group funds that suffered Brexit-related losses, exemplifying the divergent performance across the parent company's portfolio in late June 2016.
Summary
Man Group's Numeric Investors division has delivered strong returns through the first half of 2016, with its emerging-markets hedge fund generating 7.75% in year-to-date gains through June. The Boston-based fund, which employs long and short equity strategies, substantially outpaced its benchmark index, gaining 270 basis points more than the eVestment emerging markets hedge fund index, which returned 5.1% for the same period. The fund's June performance proved particularly robust at 5.5%, underscoring consistent execution during a period of significant macroeconomic uncertainty.

Numeric Investors, which Man Group acquired in 2014, operates as part of the broader Man Group infrastructure but maintains distinct investment strategies and operational independence. The firm's emerging-markets group managed $2.6 billion in assets as of March 31, 2016, making it a meaningful but not dominant player within Man Group's $78.6 billion asset base. The emerging-markets strategies launched in 2010 and operate under the direction of Ori Ben-Akiva, head of international strategies at Man Numeric.

The stellar performance of Numeric's emerging-markets fund provides a marked contrast to difficulties experienced elsewhere within Man Group's portfolio. The firm's flagship GLG Alpha Select fund declined 3.8% year-to-date following losses of 3.5% on the day after the UK's Brexit referendum vote in late June, illustrating the divergent impact of market dislocations across different strategies and asset classes. This performance differential highlights the value of specialized emerging-markets expertise and focused execution during periods of developed-market dislocation.

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Sources

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Business Insider A little-known hedge fund is quietly killing it