Man Group assets hit another high as clients add US$13.7b

[LONDON] Man Group said assets hit another record at the end of last year, bolstered by US$13.7 billion in net inflows and performance gains in signs the hedge fund industry is making a comeback.

The world's largest publicly listed hedge fund firm managed US$148.6 billion at the end of December and its money pools generated US$12.5 billion in performance gains last year, according to a statement Tuesday. Assets, which hit a fifth successive quarterly record, and net inflows both beat a consensus of analysts polled by the company.

"Our diversified range of products and longstanding client relationships, combined with our diverse talent pool and cutting-edge technology, define Man Group, underpin our strategy and give me great confidence in our ability to continue to deliver value for our clients and shareholders," chief executive officer Luke Ellis said in the statement.

Man Group, which runs a mixed range of products from hedge funds and quantitative money pools to long only funds, is a leading barometer for investor interest in the industry. Its funds pulled in more money when investors returned to bet again on hedge funds last year, pouring in a net US$14 billion after withdrawing more than US$160 billion in the previous two years, according to eVestment data.

All four main computer-driven hedge funds run by Man Group made money last year with AHL Evolution leading with a 17 per cent return.

Core profits before tax of US$658 million was also higher than analyst estimates of US$610 million. Analysts had estimated assets of US$145.7 billion and net inflows of US$10.9 billion. BLOOMBERG