Man Group Plc, the world’s largest publicly traded hedge-fund firm, reported net inflows of $500 million in the first quarter as its computer-driven funds attracted investors. The shares rose the most since Dec. 17.
Sales of $5.1 billion more than offset $4.6 billion in redemptions, the London-based firm said in a statement on Friday. Asset under management marginally fell to $78.6 billion from $78.7 billion at the end of December.
"Investment performance across our quantitative strategies and net inflows meant that group funds under management remained stable over a highly volatile quarter," Chief Executive Officer Manny Roman said in the statement. "The ongoing uncertainty in the markets remains challenging and, accordingly, the risk appetite of our clients has the potential to impact flows.”
Hedge funds ended the first quarter down 0.8 percent, recovering from deeper losses in the first two months of the year as equity and commodity markets rebounded, according to Hedge Fund Research Inc.
Man Group gained as much as 5.5 percent in London trading and was up 4.4 percent at 158.1 pence at 8:20 a.m. The shares have fallen about 10 percent this year, compared with a drop of 18 percent in the STOXX Europe 600 Banks index.
The firm’s AHL/Numeric unit, which uses computer-driven models to bet across asset classes, added $2.3 billion in funds under management, driven by $1.3 billion in net inflows, positive investment performance and a foreign-exchange boost. The net inflows beat the $300 million expected by Goldman Sachs Group Inc. analysts.
“This strength reflects an acceleration in investor demand," the analysts said in their note.
Investors took money out of the firm’s unit that uses fundamental analysis to make money. The unit had a $900-million drop in funds under management, primarily because of redemptions from its North American equity and convertibles investment strategies and negative investment performance.