British hedge fund Man Group says Q1 assets up 10 pct

British hedge fund Man Group says Q1 assets up 10 pct

Man Group Plc, the world's largest publicly traded hedge-fund firm, reported its highest net quarterly inflows since the second quarter of 2011 as investors allocated capital to its long-only strategies and fund of funds.

For the quarter ended March 31, the investment manager recorded funds under management of $88.7 billion, up from $80.9 billion as at December 31, 2016.

Investors putting cash to work with hedge funds had started picking up pace since the start of the year, industry tracker Eurekahedge, which said net inflows came in at $26.1 billion. The increase was driven by USD3.00 billion in net inflows, as well as USD2.20 billion in investment gains.

Positive investment performance added a further $2.2 billion, with long-only strategies contributing $1.9 billion and its alternatives strategies $400 million.

"The first quarter of 2017 has been a strong period for Man Group, with funds under management increasing by 10% to USD88.70 billion and growth in each of our investment engines".

The net inflow figure was treble the forecast of some analysts for the first three months of the year and Luke Ellis, chief executive, said that the company had benefited from a "good pipeline of interest from clients".

In early morning trading, Man Group shares on the FTSE 250 index were almost 3%, or 4.2p higher at 148.6p.

Meanwhile, the completed acquisition of United States and Europe-based real asset manager Aalto, which completed on January 1, added US$1.8bn to Man's funds.