AHL Plummets 8.74% In Worst Month In Decade

Jun 5 2013 | 11:57am ET

The Man Group's flagship strategy suffered its biggest monthly drawdown in more than a decade, sending its share price tumbling in a rude welcome to new CEO Emmanuel Roman and new AHL chief Sanday Rattray.

AHL Diversified dropped 8.74% last month, erasing year-to-date gains that indicated that the quantitative fund might have turned a corner; prior to May, AHL had posted positive returns in six straight months. The $14.1 billion strategy is now down 0.59% on the year.

Roman, who took the reins at Man at the end of February and placed a number of former GLG Partners executives—like himself—in top posts, including former GLG adviser Luke Ellis as president and Rattay at AHL. Man bought GLG in 2010.

AHL's May losses led UBS to cut Man's rating to neutral from buy, and sent shares down almost 17% on the day.

"Man Group remains highly dependent on AHL, which has had a 12% pullback from its recent peak, leading to a significant cut to earnings, but also reducing the probability of flows turning," UBS analyst Arnaud Giblat wrote to clients today.


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...