Money managers under the microscope
Man finds a friend
There has been plenty of bad news surrounding Man Group in recent months.
Assets at end-June were $43.3 bln, compared with $79.5 bln a year before. Flagship managed futures strategy AHL, which not so long ago was boasting some superb-looking performance figures in spite of the credit crisis, is down 5.1 percent over the past year after a poor first half of 2009.
And Man Group’s shares have underperformed the market by 44 percent over the past year, though they have outperformed during 2009.
However, according to Neptune fund manager Jeremy Smith, who has recently bought shares in Man Group, equity investors are being too downbeat about the industry’s prospects.
“A lot of fund managers have written off the hedge fund industry, but from anecdotal evidence it seems a lot of money is being raised. Valuations (in the sector) are extremely low.”
This certainly fits in with the slightly brighter picture of the industry that we are beginning to see emerge.
Data from HFR shows Q2 net redemptions slowing and some commentators have suggested the industry may now actually be seeing net inflows again. If so, then Man Group’s recent outperformance of the market could yet continue.