Man Profits Hit By Lower Performance Fees

Sep 28 2010 | 12:21pm ET

Big redemptions and a precipitous drop in performance fees add up to bad news about the Man Group’s first half profit.

The world’s largest public-traded hedge fund firm said its estimated profit for the six months ended Sept. 30 would be 55% lower than last year at US$135 million. Performance fees fell 79% to £10 million in the first half.

The firm’s assets under management are likely to grow US$1 billion to US$39.5 in the three months to Sept. 30, although Man has suffered US$600 million in redemptions during the quarter.

“The last six months have seen further mixed macro signals across global economies and continued uncertainty in markets,” CEO Peter Clarke said. “It has therefore been pleasing to see Man’s investment strategies performing well in these difficult conditions.”

Man is buying hedge fund GLG Partners in a deal expected to close on Oct. 12.


In Depth

Q&A: TCA Fund Management's Bob Press on Small-Cap Private Equity

Aug 25 2016 | 8:55pm ET

The emergence of private credit as a replacement for traditional bank financing...

Lifestyle

Kiawah: Island Reversal

Aug 24 2016 | 9:59pm ET

Looking for real estate investments but the typical real estate fare isn’t cutting...

Guest Contributor

Old Hill Partners: Embrace Illiquidity

Aug 9 2016 | 2:39pm ET

The age-old financial concept that higher yields are the result of higher risk and...