HEDGE fund Man Group took a hammering yesterday after a surprise slump in flagship fund AHL took the sheen off a recent revival of fortunes.
Traders sent shares down more than 16 per cent after AHL, which delivers 70 per cent of the company’s revenues, said it lost 6.1 per cent last week and 3.1 per cent the week before – wiping out strong gains made in the first quarter.
AHL’s performance is now 12 per cent down from its peak last month, undermined by the recent downturn in Japan’s Nikkei index and rise in US government bond yields.
The fall, which wiped out a bullish run this year, mirrored a broader dip of nearly two per cent in the FTSE 250.
“[Yesterday] was a risk-off day and Man is a risk-on stock, so there was a double hit there,” RBC Capital Markets director Peter Lenardos said.
Earlier in the day UBS had downgraded Man from “buy” to “neutral”, slashing earning estimates.