Hedge fund manager Man Group’s assets hit all-time high after bumper first half

[LONDON] Man Group hit a 16-year high after the company’s assets jumped to a record in the first half of the year as clients poured money into the firm’s long-only investment strategies, and strong performance gains helped drive growth.

Assets under management (AUM) at the world’s largest listed hedge fund company soared to US$253.6 billion in the first half of the year, according to a statement on Tuesday (Jul 28).

That is up from US$228.7 billion at the end of the first quarter, and beat company-compiled analyst estimates by a wide margin, which had anticipated AUM to reach US$245.1 billion.

Asset growth over the six months through June was driven by US$19.8 billion in performance gains, as well as net inflows of US$7.1 billion, which were largely directed into long-only strategies.

Shares in Man Group jumped as much as 9 per cent in early London trading to reach 327.2 pence, the highest since 2010.

“In today’s markets, clients are consolidating their relationships with a smaller number of highly capable, strategic partners who can help them manage complex risk and growing macroeconomic uncertainty,” Man Group chief executive officer Robyn Grew said.

Man Group’s asset growth is the latest sign of the industry’s bumper first half. Hedge funds returned an average 7.4 per cent in the six months through June, the best since 2009, according to data compiled by research firm PivotalPath.

That is whetting investor appetite, with giants including Singapore sovereign wealth fund GIC and the Abu Dhabi Investment Council planning to allocate tens of billions between them to the industry.

“If you go beyond the numbers what is particularly pleasing is the broad-based nature of the growth you are seeing and the investment performance we are generating,” Man Group’s chief financial officer and chief operating officer Antoine Forterre said on Bloomberg Television.

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“Our main multistrat is up around 7.9 per cent and that is the best representation of the alpha we have been able to generate for clients.”

London-based Man Group runs a range of investment products from hedge funds and quantitative money pools to long-only strategies.

Last year, the investment firm began offering its first exchange-traded funds, with the launch of two actively managed bond funds. BLOOMBERG