Man AHL Diversified Program Review – that will be the topic of today’s article.
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Man Group plc is an active management enterprise originally founded by James Maine in 1783 as a sugar cooperative and brokerage company. It provides a range of funds to institutional and private investors around the world and is the world’s largest publicly traded hedge fund company with $ 117.7 in revenue. billion in management as of December 2019.
The firm is headquartered at Riverbank House in London and employs over 1,000 people in locations around the world. The company has sponsored art and philanthropic initiatives, including the Man Booker Prize.
The company was founded by James Maine in 1783 as a cooperage and brokerage company based in Harp Lane in Billingsgate. The following year, the Man Group won a contract to supply the Royal Navy with rum for the daily “rum” – a tradition in which all sailors were given a daily ration. This tradition continued until 1970, when the Man Group held the contract for the entire period.
The company continued to expand from sugar and rum to other commodities such as coffee and cocoa. The company conducted a commodity business throughout the 19th and 20th centuries, gradually diversifying into financial services following the emergence of financial exchanges to hedge commodity risks.
The firm was renamed ED&F Man in 1869, based on the initials of James Maine’s grandsons Edward Desborough Maine and Fredrick Maine. In 1994, ED&F Man was listed on the London Stock Exchange. In 2000, the company split into two completely different businesses: Man Group plc focused exclusively on financial services, and ED&F Man (the product division) became private property as a result of the management buyout.
In 2007, the Man Group transitioned to its current form as an investment management business following the division and listing of its brokerage company (known as MF Global) on the New York Stock Exchange.
Over time, the Man Group achieved its current structure through an acquisition. Man AHL is the group’s oldest investment manager, acquired from 1989 to 1994. Other Man Group investment managers were formed through acquisitions between 2010 and 2017, beginning with the 2010 acquisition of Man GLG (formerly GLG Partners) for $ 1.6. billion , followed by Man FRM in 2012, Man Numeric in 2014, and Man GPM in 2017.
In late 2017, the group announced the creation of a quantitative hedge fund in China. The firm has been licensed to operate in the country since 2012 but was recently granted permission to act as a private equity fund manager: Man is one of the first global firms to receive this accreditation. The fund will be managed by Man’s AHL division.
Man AHL is one of the oldest systematic managers. It is a proactive technology-driven investment management focused on delivering performance and solutions to the client’s portfolio.
Man AHL is a team of researchers, developers, and traders of systematic investment strategies. They apply scientific rigor and reliable technology to diverse data collections and hundreds of global markets. Through our innovative culture of collaboration, we strive to bring value to our customers from a wide variety of products.
Man Investments, arguably the most prolific retail hedge fund manager in Australia, has successfully used its AHL Global Managed Futures Program in all of its OMIP capital guaranteed investments since 1997. With a cumulative return of 17.3% per annum since December 1990, and with a return of over 25% in 2008, AHL’s Diversified Program (AHL) has proven extremely successful in generating return on investment in both growing and declining markets.
Investors looking to diversify their investments from traditional managed funds through managed futures would do well to consider investing either directly with AHL Fund Ltd or through one of the OMIP products that launch 2-3 times a year.
With over 30 years of research and innovation experience, Man AHL is one of the oldest systematic managers.
Man AHL was founded in 1987 as a Commodity Trading Consultant (CTA), with the Man Group initially taking over controlling interest in the business in 1989 before acquiring the remainder in 1994. From an initial focus on trend following strategies, Man AHL has evolved into a multi-strategic quantitative business.
Drawing on years of experience, Man AHL is also committed to continually promoting innovation and out-of-the-box and unlimited thinking.
Our investment programs are based on a long-standing philosophy that markets exhibit persistent anomalies such as price trends, reversion to the mean, carryover, or other repeating patterns that can be identified through rigorous statistical analysis. They believe that many of these deficiencies are the result of behavioral biases such as risk aversion, latching, and grazing.
The company’s core principles are focused on diversification, efficiency, and risk control. In addition to our ongoing efforts to expand the range of trading strategies, great efforts are being made to explore new markets in order to maximize portfolio diversification.
With thousands of trading signals generated every day, we believe it is vital to simplify the execution of trades, including order matching, flow automation, maintaining a wide range of counterparties, and reserve shopping centers that can operate 24 hours a day.
Risk management is built into all of their models and is further enhanced by the independent risk management team using proprietary systems that have been developed since they were founded in 1987.
Interaction with their clients through strategic partnerships is their number one priority. The company strives to exceed expectations through the quality of their investment decisions and the highest levels of customer service and transparency.
They offer a wide and varied range of systematic programs in the following three categories:
- Pulse: Man AHL has been trading impulse strategies for nearly three decades. Flagship momentum programs today use a wide variety of momentum patterns spanning over 700 markets.
- Multi-strategy: These programs offer unlimited access to the full suite of Man AHL systematic models, return to mean and fundamental models. Institutional Solutions Program Delivers More
- investors the ability to customize their investments according to their needs.
- Liquid Strategies: These programs trade a similar set of models to the above programs, but are limited to the most liquid markets.
At Man AHL, they include RI in their investment process while recognizing their fiduciary role and striving to provide their clients with attractive risk-adjusted returns.
The wide range of capabilities means that there is no single system of environmental, social, and governance (“ESG”) solutions that can be applied consistently across all of their programs.
As such, they are constantly looking for innovative ways to incorporate RI into our systematic portfolios. They also integrate RI into the investment process through our own RI exemption list.
This list supports the exclusion of 4 areas from their universe with one name, namely: controversial weapons and ammunition, nuclear weapons, tobacco, and companies that receive more than 50% of their income from coal mining.
The RI-focused proxy voting policy applies to all holdings as they believe they have a responsibility to use the voting rights to promote sound corporate governance practices in their enterprise invested companies on behalf of their clients.
The responsibility extends not only to the investment process but also to aspects such as governance and diversity. For example, their diverse workforce enables them to possess a diverse range of academic and technical backgrounds, creating an inclusive and innovative research environment that they believe will ultimately benefit the investors.
Finally, Man AHL engages with the broader investment management community to discuss, critically evaluate, and formulate new best practices.
The company truly believes that advanced quantitative trading strategies require reliable technology at all stages; from market data collection and initial research to model implementation and trade execution. They believe this core focus allows the scientific models to move from concept through backtesting to production trading with minimal overhead and maximum efficiency.
Having a common programming language and common codebase fosters collaboration and encourages working practices. Their methods of designing hardware, tools, and software provide the high levels of performance, quality, and flexibility needed to quickly meet the needs of a dynamic business.
In execution technology, their main goal is to provide the best possible execution for the clients. Since they fundamentally consider that competition is the key, they have several trade routes; Algorithms developed by AHL, third-party algorithms, and manual trading table. They constantly engage in fierce competition between these routes to ensure optimal trade.
Through a clever combination of specialized hardware, proprietary software, and significant investments in open source technology, they have created a technology platform that dramatically increases research speed and satisfaction, with the intention of ultimately bringing value to their customers.
The Man’s Data Science group is a critical backbone within the organization. Having a common data platform encourages cross-group collaboration and innovative thinks to find unique ideas in the data. They look beyond the traditional landscape to develop creative solutions for various complex investment theses. Data scientists work with their researchers to drive new ideas, investment strategies, and differentiated alpha solutions for the benefit of their clients.
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