Hedge firm Man Group to sue over Madoff exposure

Date: Wednesday, January 14, 2009
Author: Reuters.com

Man Group (EMG.L: Quote, Profile, Research), the world's largest listed hedge fund firm, told Reuters it will take legal action, in conjunction with its investors, over the firm's exposure to the alleged fraud by U.S. financier Bernard Madoff.

"We will be suing the people involved," Man Chief Executive Peter Clarke said in an interview on Wednesday.

"We will be looking for remedies on behalf of our investors ... We will take action in conjunction with our institutional investors." Last month Man Group said it was exposed to Madoff Securities through its institutional fund of funds business, RMF, which had around $360 million in funds directly or indirectly sub-advised by Madoff.

Bernard Madoff is accused by U.S. authorities of running a worldwide fraud that they say may have cost investors $50 billion. (Reporting by Laurence Fletcher; editing by Simon Jessop)