New York (HedgeCo.Net) – Hedge fund investor Man Group reported funds under management (FUM) at 31 March 2014 standing at $55.0 billion (31 December 2013: $54.1 billion). The hedge fund giant also reported inflows in the quarter of $2.0 billion, comprising sales of $6.5 billion and redemptions of $4.5 billion with net inflows into GLG alternatives and long only funds being partially offset by net outflows from FRM funds and guaranteed products.
“The market environment in the first quarter has been particularly challenging and March was a very difficult month for the industry. In this context, performance across the firm was reasonable on a relative basis.” Manny Roman, Chief Executive Officer of Man, said. “Whilst we are pleased to have recorded a solid quarter of net inflows, we remain cautious in our outlook for asset flows for the rest of the year given recent mixed absolute investment performance.”
However, overall investment movement of negative $0.7 billion in the quarter, AHL Diversified programme was down 2.2% in the quarter which was the main driver of the negative investment movement of $0.3 billion in Quant alternatives strategies.
- Performance in GLG alternative strategies was flat overall with positive performance in credit strategies being offset by negative performance in equity and macro strategies
- Performance at FRM was positive overall which increased FUM by $0.1 billion in the quarter. FRM Diversified strategies were up 0.5% in the quarter
- The majority of GLG Long only strategies had negative investment performance in the quarter. Japan CoreAlpha strategy was down 5.9% which contributed to the majority of the negative investment movement of $0.5 billion
- FX movements of positive $0.3 billion in the quarter, driven by the weakening of the US dollar against the the Japanese Yen
- Other negative movements of $0.7 billion driven by guaranteed product degears of $0.3 billion and product maturities and other movements of $0.4 billion
Man also completed $68 million of the $115 million share repurchase programme announced on 6 March 2014 equating to 40 million shares.
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