It recently sold 81.4% of its stake in MF Global (MF), a brokerage that had an IPO last summer. The sale, whose net proceeds of about $2.75 billion are being returned to Man shareholders, is what made the firm a pure-play asset manager, the business model of choice nowadays for asset managers.
That doesnt mean much. The fact is, commodity deflation has yet to really take hold, and that is longer-term bullish for business (MF). Look at Gold today, its up about $20/oz, while stocks rally 200+ in the Dow! I find that to be most interesting!
Thats a good point. The question though, is what will be the catalyst for MF to break the stock out of the 5 range?
It almost might make sense at this point if Bernard Dan looked at a strategic acquisition of maybe a down trodden competitor or something of that nature. The loss of interest income worries me. While I do like the prospect of the managed futures product, it maybe time to boost growth by buying a company who is involved in the futures market but has other revenue streams, if indeed such a company exists.
Depends how you look at it I guess. If they sold their stake they obviously didn't want to be invested in MF. If the money is going to their shareholders it's not like they did it because they needed to raise cash.
It's been a tough and bumpy ride for MF since they were spun off from Man. If you got a piece of the IPO your obviously not a happy camper as it has never even touched the $30.00 price. I beginning to think that MF is not the major player in the futures market as their competitors. Relatively small operation which for some reason traders love to short. To take this company to the next level price wise would require out of this world earnings, growth and expansion and so far all we got is a new managed futures product. Big whoop.
Yeah, that jerk wad Kevin Davis is gone but there hasn't been much to cheer about in the MF camp for quite some time. The biggest headline was when they tried to retire debt.
IMO---its even at this point for MF. It is a positive for Man Group as I read a few months back that they were down in the market and their shareholders are happy that they are adding the sale to their books. As a shareholder in MF, I like that they are out of the headlines. The sale must have been behind the scenes instead of in the open market without a major downside to mf's pps. This was a concern of mine and the news of this clearing is welcomed. Best case for letting your offspring go without taxing them.