Man Group is continuing to enhance its presence in the Middle East by planning to establish an office in Abu Dhabi. This move aligns the company with a growing trend of global hedge funds heading to the UAE, as reported by Bloomberg.
The investment firm, which oversees assets totaling $214 billion, is preparing to apply for a license to operate from the Abu Dhabi Global Market, with plans to commence its activities by 2026.
Man Group has stated that Abu Dhabi’s emphasis on innovation and artificial intelligence is in line with its long-term strategy for the region.
This initiative reflects the rapid rise of the emirate as a hub for hedge funds and trading expertise, supported by the absence of individual income taxes, favorable time differences, and the strength of regional capital, including the $1.1 trillion portfolio of the Abu Dhabi Investment Authority, which is increasing its allocation to hedge funds.
The new office will include divisions for distribution, investment, trading, and operations execution, with plans for gradual expansion.
With this development, Man Group joins larger institutions such as Brevan Howard, Marshall Wace, and Rokos, which are also based in Abu Dhabi, while significant firms like Millennium and Point72 continue to strengthen their presence in Dubai.
Additionally, the heads of Man Group and Brevan Howard, along with a senior investor from the Abu Dhabi Investment Authority, indicated on Tuesday that markets facing disruptions due to geopolitical tensions and varying interest rates present opportunities for profit in the upcoming year.
Shiv Srinivasan, Chief Investment Officer at the Abu Dhabi Investment Authority, commented on global economic changes during the Abu Dhabi Financial Week conference, stating, “With every pain comes opportunity,” referencing the increased market volatility driven by global geopolitical events and upcoming elections.
He added, “Therefore, we favor macroeconomic strategies and those that anticipate longer-term volatility.”
Srinivasan reported a 13% increase in his hedge fund portfolio so far this year, attributed to macroeconomic hedge funds and investment trends projected for 2026.
He mentioned, “These strategies performed exceptionally well for us in 2022, along with trend-related hedge funds.”
Despite a more than 20% drop in the stock market in 2022, trend and macroeconomic hedge funds achieved returns exceeding 40% in some instances.
Robin Grosse, CEO of Man Group, which manages multiple trend and macroeconomic-related hedge funds, has confirmed that volatility creates favorable trading opportunities.
Grosse, who became CEO of the firm managing $214 billion in 2023, expressed, “Yes, we embrace a bit of volatility. Yes, we appreciate some price divergence.”
She further noted, “Hedge funds and alternatives tend to reveal opportunities that arise from volatility, and I believe they provide that.”
Aaron Landy, CEO of Brevan Howard, which handles investments exceeding $30 billion, anticipates an increase in the variance of asset values in global markets or price divergence.
Landy remarked, “I cannot envision any scenario where the U.S. administration shifts its stance and declares China its new favorite ally.”
He also sees significant opportunities in interest rate disparities worldwide and in cryptocurrency investments.
He added, “Of course, the cryptocurrency market is volatile, but the greatest risk in that area is missing the chance for substantial returns.”