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Man GLG loses £1.5bn after market turmoil

Man GLG loses £1.5bn after market turmoil

Man GLG saw its funds under management drop $2.3bn (£1.5bn) in the third quarter of 2015 after what the firm called “extreme market movements”.

Manny Roman, chief executive officer of parent company Man Group, said market performance in the last three months had hindered its long-only strategies run by Man GLG.

Funds under management fell to $13.6bn from $15.3bn.

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Man GLG’s alternatives business saw funds under management fall by $600m, down to $17.4bn, between June 30 and September 30.

According to Man Group, the drop in long-only funds under management was mainly due to the performance of its £1.5bn Japan CoreAlpha fund, which was down by 14.8 per cent in the quarter.

The fall in alternatives funds was also down to performance.

Some $300m of net inflows was “more than offset by negative performance and maturities”, with “negative investment movement” attributed mainly to poor performance in the firm’s North American equity strategy.

This vehicle was described as “materially more directional than the other alternatives strategies”.

Man Group said: “Year to date performance across Man GLG’s range of long-only strategies as a whole has been good with asset-weighted outperformance (relative to the weighted performance of relevant reference indices, net of fees) of approximately 2.1 per cent.”

Mr Roman added: “Despite the extreme market movements in late August impacting absolute performances across our long-only strategies, we have seen good relative performance across the majority of our strategies for the year to date.”