Man Shares Rise On 2013 Inflows, Share Buyback Plan

Feb 27 2014 | 7:59am ET

Man Group shares rose on Thursday as the hedge fund company posted a 2013 pretax profit of $56 million and Q4 inflows of $700 million.

Man's profit compares favorably with a loss of $748 million in 2012, a year in which it had more than $1 billion of charges, including a $746 million impairment to write down the value of its GLG Partners unit.

Shares in the world's largest publicly traded hedge fund firm gained as much as 11.8% on Thursday as it announced its intention to repurchase $115 million in shares and said it was on track to realize $270 million in cost savings by the end of 2015.

Man also announced plans to pay a final dividend of 5.3 cents per share bringing the total dividend for the year to 7.9 cents.

Hedge funds managed by Man's GLG Partners unit ended 2013 in the black but the firm's flagship AHL Diversified hedge fund contracted to $11.9 billion in assets as of Dec. 31, shrinking for a third straight year.

Said Man CEO Manny Roman in a statement:

“Despite challenging conditions for our business, we continued to make progress against our strategic objectives in 2013. Our priorities remain to deliver superior risk-adjusted investment performance, build options for growth, improve and leverage our distribution capabilities and operate the business as efficiently as possible. We largely completed the restructuring of our cost base and balance sheet during the year, and continued the development of new business areas. Investment performance in 2013 was reasonable on a relative basis and flows showed modest recovery towards the end of the year after a weaker first half.”


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...

 

From the current issue of