By Laurence Fletcher
LONDON, Sept 7 Man Group has hired
Pimco's former global head of portfolio management Sudi
Mariappa, as the embattled hedge fund firm looks to revive its
fortunes and win back clients with a major push into bond funds.
Mariappa, who was at Pimco, the world's largest bond fund
manager, from 2000 to 2010 and who worked with high-profile
founder Bill Gross on its hedge funds, will head up the launch
of a series of bond funds at Man's manager-driven GLG unit.
Big-name hedge fund firms including Man and Brevan Howard
believe that bond trading is attractive at present, despite the
ultra-low or negative yields on offer in some developed markets.
Funds say price movements, which they can profit from, are
as big now as when interest rates were at much higher levels,
while there are fewer rival traders as banks cut proprietary
trading desks to comply with new regulation.
"It's about expansion, rather than running the existing
business," said a Man spokesman, adding that Mariappa will act
as an advisor to GLG's Chief Investment Strategist Jamil Baz.
GLG, which Man bought in 2010 in a widely-criticised $1.6
billion deal, already runs a range of credit funds as well as
the Atlas macro fund, which invests in sovereign bonds.
Earlier this week Man's Systematic Strategies unit announced
the launch of a computer-driven bond fund.
The hire comes as Man, whose share price has dropped by
around three-quarters since the start of last year on the back
of client outflows and poor fund performance, tries to regain
investor confidence and improve returns.
In June it dropped its finance director, while in July it
announced $100 million of cost cuts, its third wave of savings
since the GLG purchase.
Man ran $52.7 billion in assets as at the end of June.
Separately, Man said Driss Ben-Brahim, co-manager of GLG's
Atlas Macro fund, will take early retirement and leave the