Multi-manager business

The multi-manager business seeks to identify the best hedge funds from around the world and make them available to investors either on a standalone basis or in fund of hedge fund portfolios. This process involves:

Manager selection

A global team of investment specialists identifies suitable managers who may be eligible for inclusion in Man Investments portfolios. Potential managers are subject to a rigorous investigation including quantitative and qualitative analysis as well as on-site operational due diligence before being put to the Manager Approval Board. This board includes the most senior investment professionals in our company. 

Portfolio construction

Once a manager is added to the approved list, they become available for inclusion in portfolios. Each portfolio has a dedicated portfolio manager. Portfolios are constructed to three specific mandates: 

• Actively managed discretionary portfolios, for example a customised fund or niche strategy. The managers of these portfolios have a high degree of discretion in how they allocate capital. 
• Diversified multi-strategy, multi-manager portfolios. The portfolio managers have a degree of discretion into how they allocate but operate within the framework of a strategic (SAA) and tactical (TAA) asset allocation model. 
• Structured products, for example capital guaranteed funds. The portfolio manager has a degree of discretion into allocation but operates within a clear mandate and is also responsible for managing the rebalancing, financing, gearing and hedging of these products.

Importantly, portfolios are constructed using the approved manager list but independently of the manager selection process. Each portfolio has to be justified to and approved by a board of senior investment professionals.

Risk management

Risk management is integral to the entire investment process and includes ongoing due diligence, quantitative and qualitative risk assessment and regular monitoring of key risk measures. The risk team operates independently to ensure complete accountability and has the right of veto over manager selection, portfolios and products.

The entire investment process is designed to ensure: 

• clear segregation of responsibility throughout the process 
• continuous and independent risk management 
• senior executive oversight at key stages

This provides a disciplined, scalable framework for developing robust portfolios with the potential to deliver consistant returns within tight risk parameters.