Funds Hub

Money managers under the microscope

Results revive Man

May 27, 2010

Some good news for Man Group this morning as its shares soared 6.5 percent on this morning’s full-year results.

Asset levels were actually down since the end of March (from $39.4 bln to $39 bln), but such have been the outflows from Man’s funds that these figures imply a stabilisation of assets and, according to Credit Suisse, zero net outflows.

Man still isn’t fully┬ábenefiting from the renewed investor appetite for absolute return funds that much of the wider hedge fund industry is seeing, but investors are taking heart from today’s update.

If institutional investors follow the lead of private investors, who have been net investors into Man’s funds over the past year, then flows could quickly turn positive.

Investors were also eyeing a recent upturn for AHL, which lagged its rivals last year. While “uncorrelated returns” sound good during market falls, (as we’ve had recently), it’s less attractive in situations such as 2009 when the stock market is soaring and a fund is losing money. However, AHL is up 3.5 percent so far this year — performance that has been boosted, claims CEO Peter Clarke, by Man’s decision to double its research team over the past two years.

Man’s shares had underperformed the market by 30 percent so far this year before today. Today’s jumps shows that ‘less bad news’ is often enough to rejuvenate a battered share price.

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