Sources at GLG Partners, part of Man Group (MNGPY)announced that Pierre-Henri Flamand will join the firm this summer. Mr Flamand, a former proprietary trader at Goldman Sachs, previously launched Edoma Partners LLP, a hedge fund, in 2010. This highly visible role at Goldman facilitated his ability to secure more than USD2bn to start the fund. Edoma was shuttered in November 2012 when Mr Flamand acknowledged the firm wasn’t finding enough money-making opportunities for its investors.
GLG Partners is the USD30.1bn asset management arm of London-headquartered Man Group plc. Three people at Man Group say that Mr Flamand will start at GLG Partners this summer. He is likely to assemble a team in order to launch a new hedge fund. According to the firm’s website, the fund “will invest globally, focusing on catalyst-driven trades related to corporate transactions such as mergers, share buybacks and bankruptcies.”
Mr Flamand worked at Goldman for approximately fifteen years when the firm was required to close its primarily equities’ prop trading desk. Under the Volcker rule, banks may not trade their own capital. Proprietary traders were routinely considered among Wall Street’s most elite staff from the 1980s until this new rules.
Mr Flamand, along with co-founder partners Emmanuel Niogret and Ali Hedayat, opened Edoma Partners with a twenty-person team in November 2010. Edoma’s “event-driven strategy” focused upon liquidity events including initial public offerings (IPOs), mergers, acquisitions, and restructurings of corporations. A sovereign debt crisis and sideways trading equity markets undermined Edoma’s trading strategy.
Clients quickly pulled money as the firm posted losses of seven percent over the approximate two years the fund was active. In comparison, the Euro Stoxx index fell approximately twelve percent. At Edoma’s second-year anniversary, Mr Flamand announced the decision to return the remaining USD855m to investors. He said, “I’m unable to make money in the current environment.”
According to Euromoney, European hedge fund launches have been rested at record lows for the prior two years. Post-global recession regulatory obligations and compliance burdens made the recent past a difficult one in which to raise funds.
Flamand praised Man Group for: “…performance, exceptional global resources, strong infrastructure and commitment to innovation differentiate the firm and create the optimal environment to deliver value for clients.”
At GLG, Flamand will rejoin Emmanuel Roman, the firm’s CEO who departed Goldman in 2005. He joined Man Group plc in 2010 as a result of Man Group’s USD1.6bn asset management acquisition. He was named to the chief executive role in Q1 2013. His predecessor left the firm at the urging of its investors.