Hedge Fund Reader : Rising redemptions lead to fall of share prices for Man group

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July 14, 2005

Rising redemptions lead to fall of share prices for Man group

Shares of Man group fell on the news that there was massive redemption underway for the world’s largest fund manager. Between April and June, the group has seen sales of $1.6 million. In the same period, redemptions were made which were worth $1.2 billion. This figure includes redemptions made by private investors to the tune of $700 million. This level of redemption is definitely higher than has been seen lately in the market, commented Geoff Miller, an analyst at Bridgewell Securities. MGS Diversified opportunities which is the most recent launch of Man, was able to raise $200 million. However these figures were not included in the figures of the first quarter. Man’s stock lost 3.2 percent and is regarded as the biggest loser on the FTSE100. The Man group however remains positive even in this situation and gave a statement that the overall performance of the group remains on the positive side and that its core AHL managed futures fund was up by 5 percent. Hedgefundsworld.com reports:

“Man Group, the world's largest hedge fund manager are facing rising redemptions and disappointment over the funds raised by its latest product launch, Reuters reports. Shares in Man Group fell this morning on the back of this information.”

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July 14, 2005 in Regulation | Permalink