Man Group Profits Leap On Back Of Hedge Fund Boom

by Carla Johnson, Investors Offshore.com

24 May 2004

London-based alternative investment firm, Man Group has recorded a 46% surge in its full year profits as the firm cashed in on the recent boom in the hedge fund industry.

Commenting on what he described as “an outstanding year” for Man, Chief Executive Stanley Fink said that the firm’s net management fees are up 50%, performance fees have increased by 21%, and brokerage income has risen 47%, underlining “very strong continued demand from institutions.”

The firm also revealed that its Asset Management division has recorded sales of $11.5 billion and funds under management by the year’s end were $38.5 billion. This form has been carried over into the current year when a record $819 million was raised from its most recent global fund launch, the Man RMF Multi-Style fund.

However, in common with many funds in the alternative sector, Man’s funds under management have been hit by some examples of negative performance, notably as a result of reversing trends in the currency, fixed income and equity markets in April, which, according to the Financial Times, caused the firm’s $10 billion AHL quantitative fund to slip 7%.

Despite this, Fink is anticipating another good year for the firm, revealing that the Board is “highly confident in the Group’s prospects” for the year ahead.

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