Man Group says client outflows slow
Man Group said clients pulled out less of their cash in the first three months of this year than in the previous quarter, raising hopes that the beleaguered hedge fund manager may soon stabilise its business after a dire past six months.
The firm, whose share price has fallen by almost 60 percent since September due to investor outflows and poor performance from its flagship fund, said clients withdrew a net $1 billion in the three months to 31 March.
Analysts at Numis had expected a $1.5bn net outflow. In comparison, the firm saw $2.5 billion of net outflows in the final three months of 2011.
“Redemptions reduced but investor sentiment remained fragile and we are yet to see an increase in sales,” CEO Peter Clarke said in a statement.
Assets under management fell to $59bn from $59.5bn at the end of February.
Man’s $21bn black box fund AHL has struggled this year, losing 2.2 percent so far in 2012 after falling 6.4 per cent last year. The firm said on Tuesday that AHL was on average 14 per cent away from its so-called high-water mark, above which it can earn lucrative performance fees.
However, funds at Man’s manager-driven GLG unit – which it bought for $1.6bn in 2010 – have made gains this year.
Buoyant markets have helped drive appetite for hedge funds this year. Data from GlobeOp shows investor demands to pull money out of hedge funds fell in April.
In March CEO Peter Clarke said there had been a “significant” fall in net client outflows this year, particularly in February.