AHL Program
AHL, a $21 billion program that uses computer algorithms to spot profitable trades in futures markets, fell 7.7 percent in the fourth quarter, Man Group said in the statement.
AHL funds would now have to rise about 12 percent on average to hit their so-called high-water mark, the point at which Man Group can charge investors fees for positive investment performance, the company said. Reaching the high- water mark will probably take about 12 months, according to JPMorgan's Maile. Investors pulled a net $800 million from AHL in the fourth quarter.
The company's investment funds, which include hedge funds and so-called long only strategies that bet on rising asset prices, lost a net $1.5 billion in the fourth quarter.
GLG Purchase
Man Group paid $1.6 billion for GLG in 2010 to add hedge funds overseen by individual stock and bond investors after analysts questioned whether the company's product offerings were too dependent on the computer-driven AHL.
Outflows from GLG totaled $1 billion in the fourth quarter, Man Group said in the statement. Clients mainly pulled money from GLG hedge funds that invest in securities issued in Europe and emerging markets, the company said. Man Group has dropped 49 percent since it announced the GLG acquisition on May 17, 2010.
Noam Gottesman, a founding partner of GLG, stood down as co-CEO of GLG to take on the role of non-executive chairman of GLG's units in the U.S., Man Group said today. Manny Roman will continue as sole CEO of GLG and chief operating officer of Man Group, the company said.