Man Group Gives Rosy Forecast

Date: Monday, March 31, 2008
Author: HFN Daily Report

Some hedge fund firms were unfazed by the turbulent start to 2008.

Take U.K.-based Man Group. With assets under management of $75 billion, making it the largest listed hedge fund firm in the world, it said it expected to beat market expectations for its year, which ends on May 29.

Man Group's 22% rise in AUM, from $61.7 billion at the same time last year, is driving its growth. Net management fee income is up 15% over the prior year, the firm said in a statement.

"This is a very strong set of results, achieved through a period of significant market turmoil," said Chief Executive Officer Peter Clarke.

Market forecasts have Man Group getting close to $2 billion in profits for the year ending in May. Last year, the firm reported a $1.3 billion profit.

The firm closed a new Far East fund in March at $1 billion. The fund launches April 1.

Other U.K. hedge fund firms have not weathered the credit crisis as well. Pentagon Capital, with $2 billion in assets, is closing down. Peloton Partners, which once managed $3 billion in assets, had to close after an asset-backed securities fund ran into trouble.