Thursday, 27 October 2016
Last updated 28 min ago
May 27 2010 | 11:50am ET
Man Group’s profit dropped more than US$200 million in the fiscal year ended in March as the firm’s assets under management and performance took a big hit.
Pre-tax profit at the firm, which this month announced plans to acquire fellow publicly-listed hedge fund GLG Partners, fell to US$541 million from US$743 million. While that’s marginally less bad then the firm expected, the reasons are troubling: Man’s flagship AHL strategy, home to more than half of its assets, fell by 7.7% over the period, while assets under management fell by about 16% during the fiscal year.
Still, CEO Peter Clarke called the results “satisfactory,” while he said his expectations for 2011 are “measured.”
“The word ‘measured’ is designed to address a couple of things,” he said. “Uncertainty is at the forefront of people’s minds again. There are investors sitting on the fence.”
On the bright side, assets have remained steady over the past two months, Clarke said.