Man Group funds down as institutional investors pull out in search of liquidity

MAN Group, the world&rsquo;s biggest hedge fund, has continued to bleed funds over the past six months as institutional investors seeking liquidity outweighed a resurgence in personal investment.<br /><br />Man&rsquo;s funds under management were down six per cent to $44bn (&pound;26.5bn) in the six months to 30 September and 41 per cent lower over a 12-month period.<br /><br />The hedge fund said over the past three months withdrawals had slowed and funds under management had risen two per cent.<br /><br />Private investors tipped $5bn into Man, making for a net inflow of &pound;2.7bn, and institutions contributed $700m. But both of the group&rsquo;s main funds, AHL and IP 220, recorded net outflows of $1.9bn in the first half.<br /><br />Man Group chief executive Peter Clarke said he expected inflows to turn positive by the fourth quarter.<br /><br />Man said pretax profit more than halved to $302m from $622m a year before. The profit slide was nonetheless on the high side of expectations, eight per cent above the group&rsquo;s estimate in September.