MF Global denies exposure to embattled hedge fund manager

Date: Tuesday, August 14, 2007

MF Global (formerly Man Financial) says that it has no exposure to institutional money manager Sentinel Management Group, which is sought to freeze a wave of redemptions plaguing some of its funds.

On Tuesday, the Illinois-based Sentinel applied to the Commodity Futures Trading Commission in the U.S. to allow it to halt investors from withdrawing money from some of its funds.

MF Global denied it has any involvement with the company and has been working to ensure its investor money is protected from credit risk and market jitters.

"One of the key components of our risk management is daily assessments of credit and counterparty risk, as well as general market trends. This approach allows us to anticipate potential issues such as the events at Sentinel," the company wrote in a statement. "MF Global continually takes proactive and prudent action to ensure that its capital, and that of its clients, is held at clearing houses or at the world's largest banking institutions. This approach provides security in all types of market conditions, including the volatility we have seen of late.