Forbes reports that Man Group, the world’s biggest
publicly-traded hedge fund firm, had a terrible week that got even worse on
Friday as its shares fell another 4% and hit a 52-week low. It has been a
humbling decline for the once mighty Man, which has now seen its stock fall by
60% in the last year. The stock fell every day this week.
Earlier this week, Man Group reported that in the first
quarter investors in its hedge funds withdrew $4.1 billion, which netted to $1
billion in outflows. The firm’s most important hedge fund, AHL, lost 6% in 2011
and is struggling again in 2012 as most equity markets are sizzling.
“The market
frustration is real and severe,” says Peter Lenardos, an analyst at RBC Capital
Markets in London, who estimates performance fees at Man will be $100 million
in 2012, a significant drop from the past five year average of over $400
million of annual performance fees. “Concerns include AHL performance, which
are over-shadowing good performance in the GLG and long-only products….”
Find out more at http://www.forbes.com/sites/nathanvardi/2012/05/04/the-worlds-biggest-publicly-traded-hedge-fund-is-getting-crushed/
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