It was a bad year for the Man Group’s flagship managed futures strategy—its worst ever, in fact—and that made 2009 a bad year for the Man Group.
The world’s largest publicly-traded hedge fund firm said its AHL program’s struggles cost it some 3.6% of its total assets in the third quarter. AHL, which accounts for about half of Man’s assets, shed 16.9% last year, its first-ever annual loss. December is proving particularly hard on the strategy, which fell 6.1% last month, its worst monthly performance since the previous December.
All told, Man’s assets dropped US$1.6 billion to US$42.4 billion in the third quarter, the firm said. Most of that decline was the result of redeeming institutional investors, who pulled US$1 billion. Individual investors yanked just US$100 million.
But institutional investors are also helping the firm rebuild its asset base. Man said it has recently won a US$1 billion managed-accounts mandate from an unidentified pension fund, and is negotiating with several other pension funds about mandates ranging from US$300 million to US$500 million. Man CEO Peter Clarke in March said he hoped to double the firm’s managed accounts assets from US$4 billion; Man now manages US$7 billion in such accounts.