Man Group sees positive quant-driven inflows

Global risePolitical uncertainties and economic upheaval in parts of the world are providing a challenging market backdrop for Man, the London-listed hedge fund group, says Manny Roman, the chief executive.

Man today reports a drop in assets under management (AUM) for the quarter ended in September of $2 billion (€1.7 billion), meaning its total AUM is $76.8 billion.

However, net inflows in the quarter were positive, at $1.4 billion, comprising sales of $5.7 billion and redemptions of $4.3 billion. Inflows were driven by quant and discretionary strategies, but were partially offset by net outflows from fund of funds strategies.

The company’s GLG and Numeric long-only strategies saw “investment movement of negative $2.7 billion”, says Man’s trading update, in the quarter, but this was partially offset by positive performance across AHL’s strategies.

The strengthening of the dollar against Sterling and the Australian dollar led to a $0.6 billion loss, though the yen’s rise against the dollar also offset the negative movement.

However, Man says it has had a good year-to-date relative performance across the majority of strategies, including GLG’s long-only and Numeric’s strategies.

Roman says: “Despite the extreme market movements in late August impacting absolute performance across our long-only strategies, we have seen good relative performance across the majority of our strategies for the year to date.

“The net inflow for the quarter was driven by flows into our quant strategies and we have a solid pipeline of sales in the near-term.”

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