Man Group Profits
Reduced Performance Fees Cut into Man Group's Profits
Perhaps it is a sign of what is to come for hedge funds, Man Group's profits took a hit from lower performance fees. Man Group, the largest publicly traded hedge fund firm, estimates that its profits for the six months ending September 30th to be 55% lower than last year. Man Group's performance fees 79% in the first half of 2010.
The world’s largest public-traded hedge fund firm said its estimated profit for the six months ended Sept. 30 would be 55% lower than last year at US$135 million. Performance fees fell 79% to £10 million in the first half.
The firm’s assets under management are likely to grow US$1 billion to US$39.5 in the three months to Sept. 30, although Man has suffered US$600 million in redemptions during the quarter.
“The last six months have seen further mixed macro signals across global economies and continued uncertainty in markets,” CEO Peter Clarke said. “It has therefore been pleasing to see Man’s investment strategies performing well in these difficult conditions.”
Man is buying hedge fund GLG Partners in a deal expected to close on Oct. 12. Source
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