Two weeks ago, Man Group CEO Peter Clarke said he was encouraged by its flagship’s turnaround, but warned that “it does need to be sustained.” Two weeks later, the AHL strategy is sustaining its positive performance.
The strategy, which accounts for about half of Man’s $39.1 billion in assets, soared 3.81% last week. The fund had been up about 5% through March 24 and 2% on the year after dropping 17.2% last year.
Of course, AHL is no stranger to high volatility. The managed futures strategy dropped 3.57% in one week in January, and lost 4.3% in the first week of December.
Meanwhile, the firm has been further buoyed by increased confidence from institutional investors, who have poured US$1.5 billion into Man Investments, the firm’s fund of hedge funds unit. Those inflows are, in part, credited to Man’s restructuring of its fund of funds business last year, when it merged its three funds of funds units after its RMF unit lost US$360 million in the Bernard Madoff scandal.