Bloomberg News

Man Group of U.K.’s Shares Fall to Lowest Level for a Decade

October 13, 2011

(Updates with closing share price from second paragraph.)

Oct. 13 (Bloomberg) -- Man Group Plc, the world’s largest hedge fund, dropped for the third consecutive day, reaching its lowest level for a decade after the net asset value of its AHL Diversified Plc fund declined.

The shares fell 4 percent to 150 pence at the close of London trading, the lowest since March 2001. The stock fell 6 percent yesterday after the London-based company reported that the assets of AHL, its computer-driven hedge fund, fell 5.5 percent in the week to Oct. 10.

The firm bought London-based GLG Partners Inc. last October for $1.6 billion to reduce its reliance on AHL, which accounts for about a third of assets under management. The stock dropped by 25 percent on Sept. 28 as Chief Executive Officer Peter Clarke forecast “suppressed” investor demand for the rest of the year.

“AHL have blamed central bank intervention as a cause of problems, which is set to continue,” said Keith Baird, analyst at Oriel Securities in London. “It also is the victim of adverse sentiment on the GLG acquisition.”

Ashmore Group Plc, a U.K. fund manager focusing on emerging markets, said earlier today assets under management fell 10.5 percent to $58.9 billion in the three months to Sept. 30. The fund manager was hurt by “market volatility resulting from the challenging and uncertain macroeconomic backdrop,” it said in a statement. Ashmore shares fell 4 percent to 318 pence in London.

“Man Group is falling for the wrong reasons and they are falling based on the negative read across Ashmore, which is an emerging market play,” said Peter Lenardos, analyst at RBC Capital Markets in London. “The fall to these levels is a bit excessive now.”

--Editors: Francis Harris, Edward Evans

To contact the reporter on this story: Ambereen Choudhury in London at achoudhury@bloomberg.net

To contact the editor responsible for this story: Francis Harris at fharris4@bloomberg.net


Cash Is for Losers
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus