Man Group stops the rot after its buyback lifts investor sentiment
THE WORLD’S biggest listed hedge fund Man Group showed signs of a turnaround yesterday after unveiling a $115m (£68.9m) share buyback programme and $700m of net inflows for the fourth quarter.
Shares in the company rose 14.3 per cent in trading yesterday as investors gave the thumbs up to the improved performance figures. “2013 was a year of progress for Man and the restructuring is largely complete. We are building a new diverse alternative investment business focused on delivering superior risk adjusted investment performance,” boss Manny Roman said.
Man has had a torrid time over the past few years due to its misfiring AHL division, which accounts for most of the group’s revenues.
The division is still having problems – just 28 per cent of its products were above their high water mark that allows managers to charge performance fees – but $1.8bn of inflows to its hedge fund GLG over the year ending December 2013 has helped offset the difficulties.
Statutory profit before tax was $56m, reversing a $748m decline for the year ending 2012. Man said it was on track to deliver its savings of $270m by 2015.