Man Group , the world's largest listed hedge fund manager, saw clients pull out cash at a slower pace in October than September, raising hopes it may be able to staunch exits of client cash despite the euro zone's deepening debt crisis.
Man said its assets under management fell by $1bn (£626m) to $63.5bn during October, while pre-tax profits for the six months to September reached $154m, above its earlier estimate of $145m.
"We are planning on the basis that investor appetite will remain subdued whilst markets remain volatile and uncertain," chief executive Peter Clarke said in the statement.
Man shares have fallen by close to 50 percent in the past year, reviving debate over the merits of its $1.6bn 2010 takeover of GLG and the awkward union of this conviction-managed business with its computer-driven AHL fund.
The group said it plans to use some of its $1bn surplus of regulatory capital to repurchase up to $150 million of stock by the end of 2011, in an effort to placate frustrated investors and put a floor under its sagging market value.
The buyback will supplement a final dividend of 7 cents per share to give a total dividend, pro-rated for the nine month period, of 16.5 cents per share.