Bloomberg – Man Group Plc, the world’s biggest hedge fund company, said the amount of money added by customers in the fiscal third quarter more than tripled after it opened a new fund.
Investors added a net $700 million in the three months ended Dec. 31, compared with $200 million in the previous quarter, the London-based company said today. While clients added $2.1 billion, including $900 million into the new fund, they redeemed $1.4 billion.
Man Group shares have advanced more than 40 percent since the start of June as the company bucked a trend of declining inflows and returns in the $1.1 trillion hedge fund industry. The stock slumped today after the new investment in the company’s funds missed the estimates of analysts including Credit Suisse First Boston’s Rupak Ghose.
“Gross sales were slightly below our expectations,” Ghose, who has an outperform rating on the stock, wrote in a note to investors today. “In particular institutional sales were weaker than expected.” Total sales fell $400 million short of Ghose’s $2.5 billion estimate in the quarter.
Man shares dropped 53 pence, or 2.6 percent, to 2,000 pence as of 9:03 a.m. in London, valuing the company at 6.1 billion pounds ($11 billion).
