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Man puts money into 5:15 Capitalís flagship fund

Date: Thursday, July 23, 2009
Author: HedgeFunds Review

Man Investments has made a $50 million long-term investment in 5:15 Capital Management's flagship 5:15 Fund through its hedge fund ventures programme.

5:15 Capital Management is a Greenwich, Connecticut based asset management company that uses global fixed-income arbitrage strategies with a macro overlay.

Man has put its money into 5:15's fund through its RMF Global Emerging Managers (GEM) product/fund.

Man's investment entitles it to certain rights not available to most other investors, including the ability to run shadow risk management and fund administration systems, most favoured nation status and a share of the performance allocations.

Man will not be able to redeem its investment in the fund until June 30, 2011, except in certain limited circumstances.

5:15 invests primarily in G7 government bonds and related highly liquid products with fully transparent pricing. The liquid nature of the securities it trades allows the fund to offer monthly liquidity.

The company takes its name from a song by Pete Townshend written to The Who.

It uses a two pronged trading system. The first is an arbitrage approach with discretionary trades evaluated and structured through proprietary models. The second is a macro approach where the team's arbitrage expertise is used to structure the trades to optimise risk/return.

5:15 applies strict risk management controls and hopes to produce stable absolute returns with minimal volatility.

5:15's team served as the core of Greenwich Capital proprietary trading business and Brevan Howard's Connecticut office for the past 16 years. The eight team members have collectively 127 years of industry experience have spent a considerable part of that time working together.

Hans Hurschler, head of Hedge Fund Ventures, the seeding/emerging managers section within Man Investments, said the team, its strategy and existing portfolio "fit well with RMF Global Emerging Managers' continuing programme of investing in emerging fund managers".

Funds under management by Man at June 30, 2009 totalled $43.3 billion.

Man Group, listed on the London Stock Exchange and a member of the FTSE 100 Index, has a market capitalisation of around £4 billion.