Manny Roman, the chief executive of London-listed hedge fund company Man Group, reports a slowdown in sales in the third quarter (Q3), in its GLG unit, though net flows overall were just positive at $0.4 billion (€0.3 billion).
Man saw sales of $4.5 billion in Q3 with positive flows into quant alternatives and long-only strategies, though sales were offset by $4.1 billion of redemptions from discretionary alternatives, funds of funds alternatives and guaranteed products.
The company’s flagship AHL fund picked up a significant client, which helped lift the sales figure.
“AHL’s traditional momentum strategies have continued their strong run of absolute and relative performance which led to a significant new institutional mandate and offset the impact of a slowdown in sales at GLG,” he says in a trading statement. GLG is a hedge fund unit that Man acquired in 2010.
He adds: “Looking forward, whilst there is a solid sales pipeline in place, and we are seeing increased appetite in long-only strategies and for managed accounts, our outlook for flows is mixed and will depend on performance.”
Funds under management at Man are up 25% to $72.3 billion, at 30 September compared to $57.7 billion in June. The acquisitions of Numeric Holdings and Pine Grove Asset Management, both asset managers based in the US, added $16.2 billion of assets, net inflows and performance added another $1.3 billion and negative foreign exchange movements reduced funds by $2.9 billion.
Overall investment movement was positive at $0.9 billion in the quarter. Performance in quant alternatives, fund of fund alternatives and discretionary long-only was partially offset by negative investment performance in discretionary alternatives and quant long-only.
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