LONDON - The Man Group, the world’s largest publicly traded hedge fund, reported Thursday its first quarterly net money inflows in two years, as clients became more confident about a global economic recovery.
Net inflows were $700 million during the three months until the end of September, including fund investments of $4.1 billion and redemptions of $3.4 billion, the firm said. Clients poured more money into funds at the company’s GLG Partners unit while AHL, the company’s largest fund, continued to struggle.
“Inflows were linked primarily to stronger performance in the first half of the year and were characterized by sizeable asset flows from certain customers, albeit into relatively low margin products,†Manny Roman, chief executive officer, said in a statement.
The London-based hedge fund had been suffering from client withdrawals in recent years after the performance of some larger funds during the financial crisis lagged rivals. Mr. Roman, who took over as chief executive in February, announced far-reaching cost cuts.
Man Group said Thursday that the cost reductions announced in August would result in $90 million of pretax charges that would affect the company’s figures in the second half of this year. The company agreed to sublet its London headquarters and reduce its staff numbers.
Mr. Roman also gave a cautious outlook for money inflows in the future, citing uncertainty in the global economic environment. Assets under management at the company rose to $52.5 billion on Sept. 30, up slightly from $52 billion three months earlier.
