New York (HedgeCo.net) – Hedge fund giant Man Group said its assets fell by $6 billion as shares dropped nearly 22% yesterday after investors pulled $2.6 billion from its funds. Man said it expects headline pre-tax profits to have fallen from $227 million to $185 million in the six months which end this Friday.
“The extreme volatility of markets in recent months has created challenging performance conditions across asset classes.” Peter Clarke, Chief Executive of Man, said. “Hedge fund styles saw mixed performance across the period as concerns around global growth prospects and sovereign debt levels, especially in the Euro zone, precipitated violent swings in equity, currency and bond markets.”
“In terms of financial performance, although assets under management reduced in the second quarter, primarily as a result of market movements in long only and the impact of foreign exchange translation from the weakening Euro, management fees for the half have been broadly stable on a like-for-like basis.” Clarke said.
Man lost $1.5 billion through negative hedge fund performance and $1.9 billion when the euro dropped against the dollar.
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