Funds Hub

Money managers under the microscope

Man and AHL

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Rightly or wrongly, the short-term performance of Man Group’s largest fund, AHL, has been closely watched by Man investors as an indicator of the firm’s fortunes.

However, according to a Numis note this week, the fact that AHL is so close to its high-water mark (the point above which a fund can earn performance fees) at the moment gives it extra weight.

“…In the short term AHL will continue to be the principal driver of the P&L in our view,” write analysts David McCann and James Hamilton. “…We believe it still accounts for a disproportionately large (>50 pct) part of the P&L.

“Moreover, given that AHL is now close to HWM (we estimate 1 pct away), the performance fee dynamic means the P&L for the next 12-18 months will look a bit like an at-the-money call option just before expiry — i.e. a small movement in the underlying will have a disproportionately large impact on the performance fee line.

Man and Lion

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Man Group shares were down this morning after last night’s news that AHL dropped 1.76 pct last week, taking losses since Nov 1 to nearly 4 percent. Broker Oriel estimates this leaves AHL 8 percent off its high-water mark.

“November’s performance will disappoint those who expected AHL to string together a good run of investment returns. The company have blamed central bank interventions since the credit crisis for AHL’s poor returns,” Oriel said.

Know your hedgie – Pix from Monaco

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Reuters snappers have been grabbing some headshots of hedge fund managers at GAIM this year. Thought we’d showcase a few here: Leda Braga, President of BlueCrest Capital Management, attends the GAIM International (Global Alternative Investment Management) hedge fund conference in Monaco, June 15, 2010. REUTERS/Sebastien Nogier (MONACO - Tags: BUSINESS HEADSHOT)

Leda Braga, President of BlueCrest Capital Management, attends the GAIM International (Global Alternative Investment Management) hedge fund conference in Monaco, June 15, 2010. REUTERS/Sebastien Nogier (MONACO - Tags: BUSINESS HEADSHOT)

Latest from GAIM

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Our reporters have been scouting round the halls at the GAIM hedge fund conference in Monaco today. Here’s a taste of what we’ve seen so far:

Man Group CEO rules out big deals after GLG buy

Hedge funds to manage $3 trln by 2013-consultant

FACTBOX-The European hedge fund industry

PREVIEW-May losses cloud hedge fund summit in sunny Monaco

And some links from Reuters Insider coverage:

FRM’s de Gentile-Williams

Blackstone’s Wien

Lombard Odier’s Kohler

Results revive Man

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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.

Long-haired Lagrange brings star culture to Man

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In our investor profile of GLG’s Pierre Lagrange, we highlight two very different sides of London’s hedge fund industry and a potential culture clash in Man Group’s surprise takeover of GLG this month. RTXRM45

REUTERS/Stefan Wermuth

In many ways, Lagrange symbolises the informal, star manager culture that GLG has based its growth on (although also suffered from after Greg Coffey’s departure and Philippe Jabre’s FSA fine).

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