Brief update on Man Group which I wrote up recently in Watching Man a real dog. They have responded to press speculation recently to confirm that they are in talks with Numeric Holdings LLC concerning a possible acquisition, although they say these talks may or may not lead to a transaction.
The FT reported on this in which they suggest Panmure Gordon reckon this could boost their earnings by 20% given it would be paid for out of surplus capital / cash. This would also help to diversify Man's business further as I believe they are mostly a long only Quantitative Fund Management outfit. Indeed in a report on Bloomberg they describe them as "Boston-based Numeric, which trades equities based on signals from mathematical models, manages $13.9 billion, according to its website." So may be they can bring some new techniques to Man Group or teach them some new tricks.
The shares were up 5% or so on the back of this having bounced off the 200 day moving average just above my target level. Still worth watching to see if they can get this deal done and start a recovery from the base the shares have been building. It would also improve the already reasonable 13x rating and help underpin the 5%+ yield - also interesting as it scores 98 (100 best) on Stockopedia's QVM ranking system, see below for an example of this and click the link above for more details of their service and a free trial.