Focus on Companies: Man Group

May 1, 2012 James Heinsman Company Spotlight

The Man Group Plc (EMG) is the largest publicly traded hedge fund manager in the world, but that has not prevented them from suffering from bad economic times.

They say that clients relieved them of a net value of $1 billion in funds during the first quarter of 2012, and other costs such as employee bonuses devoured more cash than analysts were expecting.

Man’s share price dropped by 8 percent, while clients redeemed over $4 billion from Man’s investment funds. The withdrawal was balanced by $3 billion in sales, according to the London-based company.

“The surprise to me was how low the net cash position was,” RBC Capital Markets analyst Peter Lenardos said. “Man will pay an uncovered dividend this year, so the balance sheet could get weaker.”
 

Hedge Funds, London, Man Group, Peter Lenardos,

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