Man Group is an investment manager focusing on alternative investments (hedge funds) focused on trend following investments (AHL), varied discretionary investment strategies (GLG) and Fund of Funds management. Man acquired GLG and its various market neutral investment strategies in 2010 which should greatly diversify Man’s revenues and earnings which have tended to be extremely cyclically dependent on market movements. The GLG acquisition should help reduce top and bottom line volatility. Along with the strategy diversification, Man can also benefit from geography and investor base diversification and expected cost savings of USD 50 million per year. Because of the nature of the industry, the company depends strongly on cash inflows and market performance for its management fee revenue. Fiscal and financial uncertainties in 2011 should increase redemptions, and therefore lower revenues and earnings for the company. In the longer term, Man faces regulatory risk as hedge funds face higher regulatory scrutiny.