Man’s Profit Up As Performance Plummets

May 31 2007 | 11:54am ET

In a trend that’s either disturbing or encouraging (or both), another big hedge fund says assets and profits are up, even though performance is down.

The Man Group—the world’s largest publicly-listed hedge fund—said that its flagship $18.5 billion AHL Diversified Program lost 4.8% in the fiscal year ending on March 31, driving performance fee income down 20%. But overall income soared 27%, driven by a 24% jump in assets under management, to $61.7 billion, and a consequent 34% rise in management fee income.

Total sales rose 75%, according to the firm, and it said it continues to attract massive amounts of new money, with some $3.5 billion pouring in over the past two months.

As for performance, Man made no promises. “It’s been a difficult year for trend followers, and therefore for AHL,” firm Chairman Harvey McGrath said in a conference call. Man said the group’s performance was badly hit by the market correction earlier this year.


In Depth

Star Fund Managers Battered By Rocky Ride In Yields, Currencies

May 28 2015 | 6:05am ET

Some of the biggest names in the investment world have been whipsawed by the recent...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

The Road To Tax Alpha

May 28 2015 | 5:36am ET

Tax-related alerts are increasingly helping investment managers harvest tax alpha...

 

Sponsored Content

Editor's Note