Hedge fund firm Man Group saw clients pull out assets for an eighth straight quarter, as improved performance from its flagship AHL fund failed to offset withdrawals by private investors.
Man, which is buying smaller rival GLG to boost assets and diversify away from computer-driven funds, said clients withdrew a net $600m (£379m) over the three months to September.
This was below the rate of withdrawals seen in the three months to June, although it was above the level of a year ago, and confounded hopes that the firm would follow the improvement in the wider hedge fund industry and attract clients again.
Man was helped by an improvement in the performance of its $21.1bn AHL fund, which lost around 16 per cent last year but is up around 7.6 per cent this year, well ahead of the average hedge fund's gains although still failing to pull in notable performance fees. AHL's gains helped lift Man's assets – on which fund firms earn their standard management fees – by three per cent to $39.5bn.
Man also said it would make an estimated half year profit of $215m.
City A.M. Reporter