The Great Debate UK

Black box trading drives descent of Man


REUTERS– Margaret Doyle is a Reuters columnist. The opinions expressed are her own –

Apparently, investors in Man Group’s flagship fund value liquidity and safety above performance. At least Peter Clarke, the company’s chief executive, hopes so.

He needs them to do so because, over the last five months, the investors in AHL, Man’s “black box” quantitative fund, have been suffering. Unlike many rival funds, Man did not “gate” its funds during the market panic, and Clarke believes that investors will remember this and reward Man for it.

Clarke says that the punters, who account for the bulk of Man’s $44 billion of funds under management, bought $2.6 billion of Man’s funds since the end of March, but the institutions are still running for the exit.