Shares of Man Group, the huge publicly listed hedge fund group, are getting killed today to the tune of 21%.
The culprit: Basically, really ugly assets under management/client flows numbers.
Flows: inflows from AHL and institutional fund of funds and outflows from guaranteed products and GLG styles gave a Q2 outflow of $2.6 billion (H1 inflow of $1.1 billion driven by positive flows from GLG in Q1 and from AHL across both quarters)
o After record sales in Q1 of $9.0 billion, Q2 sales reduced to $4.5 billion, reflecting an anticipated deterioration in investor sentiment over the summer
o Redemptions increased from $5.3 billion in Q1 to $7.1 billion in Q2
All told, AUM of $65 billion was about $5 billion shy of expectations.
And obviously, Man’s ugly numbers will raise questions about how the rest of the industry is holding up during the volatility. So far there haven’t been that many stories about mad investor exits, but it sounds like we’ll hear more soon.
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