Man Rises After Biggest Fund Posts Best First-Half Since 2008Jesse Westbrook
Man Group Plc, the world’s largest publicly traded hedge-fund manager, surged after the company’s biggest fund posted its best start to a year since 2008.
The stock rose 7.5 pence, or 7 percent, to 114.8 pence as of 11:53 in London, valuing the company at 2 billion pounds ($3.43 billion). The shares have gained 34 percent this year.
Man Group’s AHL Diversified, which relies on computer models to capture profitable moves in in bonds, commodities and currencies, advanced 9 percent in the first six months of 2014, according to data compiled by Bloomberg. AHL hedge funds account for $11.3 billion of London-based Man Group’s $55 billion of assets under management.
“Since AHL hit a low on March 21, it is up 15 percent and seems to have found a trend,” Peter Lenardos, an analyst at RBC Capital Markets in London with a sector perform rating on Man Group, said by telephone today. “This strong performance will result in high levels of funds under management, and could break AHL’s streak of outflows.”
Investors began pulling money from AHL in 2011 after actions by politicians and central banks broke up trends in asset prices, contributing to losses for the hedge fund. Its gain in 2014 marks the best start to a year since AHL surged 16 percent over the first half of 2008.