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Man’s profits halved as investors take off
26.03.09
The financial crisis has seen $17 billion (£11.6 billion) of investors' funds withdrawn from Britain's largest hedge-fund manager Man Group.
FTSE 100-quoted Man admitted the figure today as it revealed profits have nearly halved to $1.2 billion from $2.1 billion in the year to the end of March.
Over the year, total funds under management, hobbled by investor redemptions and the falling value of investments, plunged 36% from $74.6 billion a year ago to $47.7 billion.
Chief executive Peter Clarke admitted it had been a “difficult year” with the current outlook “volatile and uncertain”. He added: “We have seen a reduction in funds under management and many investors, particularly institutions, have sought liquidity regardless of performance and reduced their exposure to all asset classes.”
Man's reaction to heightened demand from hedge-fund investors for clearer transparency and better oversight following the Madoff $50 billion Ponzi scandal, in which Man lost $360 million, involves a shake-up of the firm and the merger of its Man Global Funds, RMF and Glenwood arms. The dividend is held at 44 cents a share.
