Oh Man. The world’s largest listed hedge fund group has gone through the wringer over the past few months with clients pulling money out of its funds faster than it can attract new money in.
This has been the pattern not just for one quarter, but for eight on the trot. What’s never a good trend for a fund manager, especially one as ambitious as Man, was magnified as far as the commentators are concerned because of its decision to buy out its small but tremendously high profile rival GLG.
Yesterday saw the first welcome signs of a possible reversal of that trend, although it is probably too soon to be confident the group has achieved a lasting breakthrough.
There is definitely the prospect of some light, it seems, at the end of this very long tunnel. In particular the recent weakness of the US dollar has had the effect of boosting inflows into Man’s flagship AHL fund, which focuses on trends in global futures markets.
With cost savings due from the merger, this could be the time to support the shares, which trade at a sizeable discount to the sector.