Man Group looking to reverse fund outflows

Date: Tuesday, March 29, 2011
Author: Laurence Fletcher, Reuters

* Set for small net positive or flat flows

* Shares down this month on fears over Japan impact

* AHL down this year, further from high-water mark

LONDON, March 29 (Reuters) - Man Group (EMG.L), the world's biggest listed hedge fund manager, hopes to show it has finally started winning back clients, although investor nerves over Japan's nuclear crisis may delay its recovery. The company, which has been losing clients for more than two years even as other hedge funds have begun winning them back, was set to report small net positive or flat inflows for the three months to March, its fourth quarter, analysts said. "I would assume it will turn around. But because it has been such a difficult quarter in markets, that may be delayed," Oriel analyst Keith Baird said .

Man's shares are down 13 percent over the past month, in part on fears over the impact of Japan's nuclear crisis on the company's sales into the country.

In January, the Man said it had seen $1 billion of net client outflows over the three months to December, after one client pulled money out of a low-margin mandate. [ID:nLDE70I257]

Earlier this month, it gave more detail on a 1.2 billion euro ($1.69 billion) managed account mandate it had won, in which investors still have control over assets. [ID:nLDE7270ER]

Man, which last year bought smaller rival GLG to boost assets and diversify away from computer-driven funds, will also hope flagship computer fund AHL can edge back towards its high-water mark, above which it can earn lucrative performance fees. Since Jan. 3, it is down around 6 percent. (Editing by Dan Lalor) ($1 = 0.7094 euro)