Edmund Shing explains why you should invest in alternative investment management business Man Group.
1) Lots of assets: Man Group manages a huge amount of assets, over $79bn in fact, from across a range of different hedge fund strategies.
2) Very big brand names: These assets Man Group has are under very big brand names, GLG and AHL, both of which are huge in the fund world.
3) It is cheap: Man Group has a P/E ratio of 3.36% (as of 4 November), under that of the FTSE 100.
4) Income dividend yield: It also has a good income dividend yield of 5.11%, delivering a nice annual income.
5) It is geared to a rising stock market: As stock markets rise, asset managers such as Man Group tend to outperform. So if you believe the FTSE is going up, buy Man Group.
Edmund Shing is Global Head of Equity Derivative Strategy at BNP Paribas in London. He holds a PhD in Artificial Intelligence.