Man touches bottom

18 January 2012 By Neil Unmack Follow @unmack1

The world’s largest listed hedge fund has ended a dire year of outflows and poor returns with something nearing stability. A cost-cutting drive has boosted the shares. But like the rest of the industry, Man needs to show improved performance before counting on renewed growth.

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Man Group’s assets under management fell to $58.4 billion at the end of December, down from $64.5 billion at the end of September, the fund manager said in a trading update released on Jan. 18.
Redemptions slowed to $5.6 billion in the final three months of the calendar year, from $7.7 billion in the previous quarter. Fund sales brought in $3.1 billion in the quarter.
Man said it would cut annual costs by $75 million, with the impact spread over 2012 and 2013.
Man shares were up 5.5 percent at 113 pence by 1200 GMT on Jan. 18.
Man also announced that Noam Gottesman, one of the founding partners of GLG, the hedge fund business bought by Man in 2010, would step down as co-chief executive officer of GLG. Gottesman will take up the role of non-executive chairman of GLG’s US business.
Manny Roman will be sole CEO of GLG, and also Man’s chief operating officer.
The average hedge fund manager lost 4.8 percent in 2011, according to Hedge Fund Research, the industry’s second-worst year since 1990.

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