(Corrects paragraph 11, the two senior executives will be leaving the firm and were not ‘let go’)
By Nell Mackenzie
LONDON (Reuters) -Hedge fund Man Group posted a more than 40% fall in first-half core profit on Wednesday as fee income dropped, even as its assets under management rose 14% to a record $193.3 billion.
The company’s shares fell by as much as 5.75% at the market open, before reversing track to stand more or less steady on the day.
Hedge fund returns so far this year show a stark divide between those that have been able to navigate U.S. President Donald Trump’s erratic decision-making and switch tactics quickly and those hemmed in by algorithmic strategies.
“During a particularly volatile first half of 2025, we delivered positive investment performance overall and achieved net inflows of $17.6 billion,” said Robyn Grew, CEO of Man Group, which runs funds spanning a range of strategies.
Net inflows surged 1,855% in the twelve months to June 30, driven by the hedge fund’s long-only products betting on rising asset values, it said in a statement.
The bulk of the new client money came from one customer who invested $13 billion in the hedge fund’s systematic strategy, Numeric, chief financial officer Antoine Forterre confirmed to Reuters in a phone call.
The company also saw inflows into its credit strategies, where it runs roughly $43 billion, he added.
Man reported a six-month core profit before tax collected from management and performance fees of $146 million, down 43% from $257 million in June last year.
Systematic hedge funds, where algorithms ride market trends until they peter out, are down roughly 10% so far this year to the end of June, according to Societe Generale.
“It proved to be one of the most challenging periods for trend-following strategies in 25 years,” CEO Grew said in the statement.
Man Group confirmed recently two high-profile executives would be leaving while promoting others, in order to streamline operations, part of a programme launched by Grew when she became the company’s first female CEO in 2023.
Grew told Reuters the restructuring at Man Group would “reduce friction” in the organisation and confirmed that its two flagship systematic divisions, Numeric and AHL, though still separate, would be managed under one roof.
(Reporting by Nell Mackenzie; Editing by Amanda Cooper and Louise Heavens, Kirsten Donovan)
