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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“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.<\/p>\n
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).<\/p>\n