Pimco's Turnaround Man: Manny Roman -- WSJ
July 21 2016 - 3:02AM
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.
Mr. Roman, a 52-year-old, French-born former Goldman Sachs Group
Inc. banker and serial deal-maker, is widely credited with leading
a turnaround at hedge-fund firm Man Group PLC that has included a
raft of big acquisitions to diversify the business and sweeping
changes to his management team.
Pimco said Wednesday it has appointed Mr. Roman as its new CEO.
He will be based at the firm's headquarters in Newport Beach,
Calif.
Known for his collection of French wines and art, keen intellect
and willingness to spend hours talking about his beloved soccer
team Arsenal, Mr. Roman took over the reins at Man Group -- then a
struggling company -- in early 2013.
The London-based 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 a 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 manages 114.7 billion Swiss francs ($116.4 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 a 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. He has
embraced Man's sponsorship of the Booker Prize, a world-wide
literary award.
His interest in 20th-century history saw him support the Centre
for Cold War Studies at the London School of Economics and take an
interest in the dramatic decline 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 Group Chief Executive Tidjane
Thiam, Mr. Roman has often shied away from publicity, 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 family lives in the U.S.
Former colleagues say that clients typically viewed Mr. Roman
very differently than did 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, said 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 21, 2016 02:47 ET (06:47 GMT)
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