Man Group Introducing Computer Trader

September 4, 2012 James Heinsman Hedge Fund News

In another attempt to breathe new life into its struggling hedge fund firm, Man Group has begun trading government bonds utilizing a specialized computer program.

The Nomura Man Systematic Fixed Income fund was launched in July, and despite the generally low yields of government bonds, is hoping to make money using algorithms from Man’s $16.7 billion flagship AHL fund. The algorithms will help the new fund trade in bond and interest rates futures, currencies and interest rate swaps around the world.

The computer program will allow the fund to recognize price trends; pick-out inconsistencies in yield curves and then benefit when they go back to normal; and profit from higher interest rates found in emerging market currencies, but only if the program decides that the conditions are good.

“Yields are also at extremely low levels. If you’re (only) long bonds, you certainly know what your upside is,” Sandy Rattray, chief investment officer of Man’s Systematic Strategies (MSS) unit, which runs $2.2 billion.

Man Group, Man's Systematic Strategies, Nomura Man Systematic Fixed Income, Sandy Rattray,

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