Man Group shares fall 5% on higher than expected outflows
Recasts, adds share price move, analyst reaction and context in paragraphs 1, 4 and 6
By Andres Gonzalez and Nell Mackenzie
April 19 (Reuters) -Man Group EMG.L shares fell about 5% on Friday after the British hedge fund reported higher than expected client outflows.
Client outflows amounted to a net $1.6 billion, although that was compensated for by an increase of $9.8 billion in its investment performance.
Assets under management rose 4.89% in the first quarter, to $175.7 billion by the end of March, from $167.5 billion at Dec. 31.
"Overall, an impressive investment performance update from Man Group this morning, whereas the flow profile remains more challenged," said an analyst take from Investec IM21.L.
Last year proved challenging for hedge funds such as Man Group which use systematic strategies to catch consistent market trends.
Quantitative funds and multi-strategy hedge funds returned an average of 2% and 7.6%, respectively, in 2023. The hedge fund industry saw a net $80 billion of outflows for the year to Oct. 18, even as it raked in net profits of about $119 billion, said hedge fund specialist Aurum Funds in October.
Man Group is a multi-strategy fund which has quant and trend following funds.
Two of Man Group's trend following funds, AHL Alpha and AHL Diversified, posted positive returns, net of fees, of 6.9% and 12.1% respectively in the first quarter, after a negative performance in the last quarter of 2023.
Reporting by Eva Mathews in Bengaluru, Andres Gonzalez in London; Editing by Savio D'Souza, Kirsten Donovan
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
