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Man Group, largest publicly traded hedge fund in the world, saw client redemptions of up to $4.1 billion in the last quarter as investors pulled their money in light of the company’s falling stock price, according to its 2012 first quarter earnings report released this morning.The redemptions come at a time when Man Group’s stock price has fallen over 60% in the last year due to the and debate over the firm as a takeover target is especially high.
Just last week, a UBS research report explored the possibility of Man Group being acquired and noted that whoever buys the fund could see significant value from the acquisition.
The hedge fund currently oversees about $59 billion assets, so $4 billion in redemptions is just a little over 6% of its AUM. Typically, redemptions from hedge fund happen as the firm loses money in its investments—remember John Paulson and Phil Falcone’s large redemptions last year?—but Man Group’s fate appears to be tied to investor fears over the Eurozone crisis.
All in, Man Group saw $1 billion flow out of its fund because the firm made $3 billion last quarter to negated part of the $4 billion in redemptions. But that’s just a small silver lining.