Pimco's New Turnaround Man: Manny Roman -- 3rd Update
July 20 2016 - 12:03PM
Dow Jones News
By Laurence Fletcher and Giles Turner
In Manny Roman, Pacific Investment Management Co. may have found
the tough turnaround specialist the giant U.S. bond manager has
been looking for.
French-born Mr. Roman, a 52-year-old former Goldman Sachs banker
and serial deal-maker, is widely credited with leading a turnaround
at hedge-fund group Man Group PLC that has included a raft of big
acquisitions to diversify the business and sweeping changes to his
management team.
Known for his ruthlessness, collection of French wines, keen
intellect and willingness to spend hours talking about his beloved
Arsenal F.C., a soccer team in the English Premier League, Mr.
Roman took over the reins at Man Group--then a struggling
company--in early 2013.
The London-based hedge-fund firm had for years been battling
client outflows and losses from its flagship computer-driven hedge
fund AHL. It had also been tainted by the revelation it had
invested around $360 million with Bernard Madoff, the man behind
the biggest financial swindle in history.
Mr. Roman arrived at Man Group with its 2010 takeover of
London-based GLG Partners, a firm of hedge-fund traders known for
its tough culture, where he was a co-chief executive. The takeover,
seen by many at the time as gamble by Man Group, was a clash of
cultures epitomized by Mr. Roman's rise to the top.
One employee at AHL, which uses highly complex mathematical
models to trade markets, described the deal as being "like the
chess club taking over the football team."
Mr. Roman was made Man Group's president and chief operating
officer but was seen by many insiders as the power behind the
throne. He eventually took over the CEO role from Peter Clarke, Man
Group's former finance director, in early 2013, after a contest in
which many observers saw only one eventual winner.
Mr. Roman embarked on a trail of acquisitions including
Boston-based Numeric Holdings and Connecticut-based Silvermine
Capital, capped bonuses and appointed Sandy Rattray head of AHL,
which went on to become one of the world's top-performing hedge
funds in 2014.
"He is a hard task master and demands progress," said Anthony
Lawler, a portfolio manager investing in hedge funds at GAM
Holding, which runs 114.7 billion Swiss francs ($116.25 billion) in
assets. "He has been good for Man and has helped them successfully
navigate very challenging industry and market waters."
Mr. Roman, the son of a Parisian artist, is an art collector and
keen literary buff admired by those who know him for his ability to
speed-read documents and books. He is on the board of directors of
publisher Penguin Random House and a supporter of the Paris Review
of Books. He has embraced Man's sponsorship of world-wide literary
award the Booker Prize.
His interest in 20th century history saw him support the Centre
for Cold War Studies at the London School of Economics and take a
keen interest in the dramatic decline of the city of Detroit.
Last year he was elected to the board of trustees of the
University of Chicago, where he did his M.B.A. and where he has
funded a post named after him in culture and society.
A close friend of Credit Suisse Chief Executive Tidjane Thiam,
Mr. Roman has often shied away from a media profile, although his
time at the helm of Man has meant greater scrutiny. Last year his
total pay package at Man was nearly $5.4 million, while he was
among those to profit handsomely from Man's $1.6 billion takeover
of GLG in 2010.
"This is a loss for Man," said RBC Capital Markets analyst Peter
Lenardos. "Manny had a respectable tenure at Man Group.
"However, Man has other talented senior executives. Jonathan
Sorrell, the CFO, immediately comes to mind," he said.
The move to California will on a personal level suit Mr. Roman,
whose wife is American and whose family is based in the U.S.
Former colleagues agree that clients typically viewed Mr. Roman
very differently to subordinates. One former colleague said he
could flip a switch and turn on the charm with clients but could
often come across as rude, particularly to junior staff
members.
One former colleague from Goldman, where Mr. Roman was a
partner, says he was a study in dedication. "In some ways he was a
classic Goldman partner. He would work on a bank holiday if it
meant he could get a game of golf in with clients."
Write to Laurence Fletcher at laurence.fletcher@wsj.com and
Giles Turner at giles.turner@wsj.com
(END) Dow Jones Newswires
July 20, 2016 11:48 ET (15:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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