New York (HedgeCo.Net) – The world’s largest publicly traded hedge fund manager, Man Group Plc, has decided to shut down offerings that have connections to it’s largest hedge fund, AHL, Bloomberg reports.
“The company decided this month to shut Man Vision Ltd., a $40 million pool that sought to generate returns of more than 10 percent annually, according to an Aug. 12 letter sent to clients and obtained by Bloomberg News. Man Group is also closing similar offerings that, like Vision, were tied to the performance of AHL Diversified, the firm’s biggest hedge fund, said a person with knowledge of the moves who asked not to be identified because they aren’t public.” Bloomberg said.
The $14.1 billion computer-driven fund, which has been running since 1987 but whose performance has lagged in recent years, fell 8.9 percent in June 2013.
“They definitely have the highest margins and that’s due to large management fees and because AHL is run by a computer that’s not demanding a bonus at the end of the year,” said David McCann, an analyst at Numis Securities Ltd. in London who has a sell rating on Man Group. Still, “no one has wanted to buy these products in the last three to four years” because the returns have been lackluster. Bloomberg says.
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