Of Special Interest


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30th September 2011

Man group shares slump following trading update

Man Group issued a pre-close trading update for the six months ending September 30th. This included a forecast profit before tax of $145m (€106m £93m ¥11.1bn Y927m) for the period, DOWN 19%.

AHL, the traditional Man Flagship fund which went through a difficult period of losses is back in business with an investment gain of $1.5bn though net inflow was lower at $0.2bn. GLG with its bias towards Longs did less well with a net outflow of $2.5bn. Overall outflow was $4.1bn for the six months.

Man Group shares were down 27% late Thursday following the results announcement with investors primarily concerned regarding the net outflow. It was certainly the case until August that there was an overall move from equities and bonds directly held and into hedge funds. The extend of the stock price fall may well be a combination of general sentiment and that Man has issued disappointing results for many financial periods in succession. Until now investors were willing to give the company the benefit of the doubt but now patience seems to have run out.