Deal Creates Giant Hedge Fund Manager

May 23, 2002 ( - Man Group PLC will acquire Switzerland 's RMF Investment Group for $833 million in cash and stock, in a deal that will create the world's largest hedge-fund manager with more than $19 billion in assets under management.

According to a Dow Jones news report, Man Group said the acquisition would add $8.5 billion in funds under management to its current $10.7 billion.

Man Group specializes in managing hedge funds and mutual funds that invest in futures contracts. It also trades futures and options contracts in a brokerage business. RMF caters to European pension funds.

Man posted net profit of $221.9 million for the year ended March 31, up 22% from the previous year. Man said strong demand in the hedge-fund market boosted funds under management by 60% from $6.7 billion to $10.7 billion, pushing management-fee income up by 66%.