LONDON â€" Man Group, the world's largest publicly traded hedge fund, continues to see its clients pull money out of the firm, as customer outflows rose almost 60 percent, to $2.2 billion, in the third quarter of the year, the company said on Thursday.
Man Group said sales remained weak because of volatility caused by Europe's debt crisis and instability in the financial markets.
“Investor sentiment, and consequently the outlook for flows, continues to be subdued,†Man's chief executive, Peter Clarke, said in a statement. “The flow environment continues to be challenging and this was reflected in lower sales in the quarter.â€
The firm's funds under management rose 14 percent, to $60 billion, in the third quarter after Man Group completed the acquisition of FRM Holdings Group, a rival hedge fund investment manager. The deal gave Man an additional $8.3 billion of funds under management.
The acquisition is the latest attempt by the London firm t o increase assets in its fund of funds business, which have dwindled as many investors have pulled their money from Man in recent months.
Net outflows in the third quarter reached $2.2 billion, compared to $1.4 billion in the three months through June 30. Man said the value of its fund had increased $500 million over period due to an improving market performance.
In an effort to improve profitability, the London-based hedge fund has announced plans to reduce costs by almost $200 million by the end of next year. Man also appointed Jonathan Sorrell, a former Goldman Sachs executive, as its new finance director.
Persistent concerns about the company's financial health, however, have weighed on Man's share price. The firm's stock has slid 33 percent so far this year.
In early afternoon trading in London on Thursday, Man's shares had fallen almost 9 percent.
