Sebastien Nogier/ReutersPeter Clarke, chief executive of the Man Group.

LONDON — The struggling hedge fund giant Man Group agreed on Friday to sell its outstanding legal claims against the bankrupt investment bank Lehman Brothers for $456 million.

The hedge fund, which is based here, acquired the exposure last year through funds owned by its subsidiary GLG Partners, which had made trades with Lehman Brothers before it collapsed in 2008.

Man Group said it would sell the claims to Hutchinson Investors, a unit of the hedge fund Baupost Group, at a 32 percent premium to the legal exposure’s value as of June. 30.

On top of the $456 million sale price, Man Group said it could be in line for an addition future payment of $5 million if the eventual recovery from the legal claims reached a undisclosed threshold, according to a company statement.

The hedge fund, which continues to struggle as investors pull money out of its products because of their recent weak performance, said it would use the influx of cash to bolster its capital reserves.

Last month, the Man Group said net outflows in the third quarter of this year rose 60 percent, to $2.2 billion, compared with $1.4 billion in the three months that ended June 30.

In an effort to improve profitability, the British firm also announced plans to cut costs by almost $200 million by the end of 2013. The Man Group also recently appointed Jonathan Sorrell, a former Goldman Sachs executive, as its new finance director.

Shares in the Man Group fell less than 1 percent in morning trading in London.

Article source: http://dealbook.nytimes.com/2012/11/16/man-group-to-sell-lehman-legal-claims-for-456-million/?partner=rss&emc=rss