Investors Business Daily – Man Group, the world’s largest publicly-traded hedge fund manager, said Friday that its pretax profit will outpace analyst estimates thanks to stronger-than-forecastperformance fee income.
Man Group (EMGEMG) said profit before tax and exceptional items for the year ending March 31 will exceed the $1.197 billion consensus of 16 analysts it surveyed.
It added diluted total earnings per share, which were $2.09 a share last year, are expected to rise by more than 40%.
Shares in Man Group climbed 3.5% in London.
“Net performance fee income will be up strongly over last year and above consensus market expectations, reflecting good performance from all our main managers in the year, and at [quantitative managed futures unit] AHL in particular,” Man Group said.
Unlike mutual-fund managers, hedge-fund operators frequently charge fees if their funds beat set performance targets. Performance fee income was $119 million in the year to March 31, 2005.
