M
an Group (LSE: EMG) — the world’s largest publicly traded hedge-fund manager — is currently up over 5%, following publication of a press release for the third quarter of 2014, ending 30 September, in which CEO Manny Roman said that the company had continued to make progress against its strategic objectives.
Funds under management (FUM) increased by 25%, rising to $72.3bn compared with $57.7bn at the end of the previous quarter. The acquisition of Numeric and Pine Grove added $16.2bn of assets, with net inflows and performance contributing another $1.3bn.
However, adverse currency movements — principally strengthening of the US dollar against the euro, yen and sterling — had the effect of reducing FUM by $2.9bn.
Net inflows for the third quarter were $0.4bn, made up of $4.5bn in sales being mostly cancelled out by £4.1bn of redemptions. Net inflows into quant alternatives and long-only strategies were largely offset by net outflows from discretionary alternatives, fund of funds alternatives and guaranteed products.
Investment performance saw an overall boost of $0.9bn. Quant alternatives, fund of fund alternatives and discretionary long all saw positive performances, which offset negative ones from discretionary alternatives and quant long-only.
Commenting on the outlook, CEO Manny Roman said
“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. We continue to focus on delivering superior risk-adjusted returns for clients across the business.”
At 113.8p, Man Group’s share price is up 37% on this time last year, versus a FTSE All-Share index that’s dropped 7% over the same time.
