The largest publicly traded hedge fund manager in the world, Man Group, saw its outflows boosted by 57% in Q3, in a sales atmosphere that its CEO, Peter Clark, characterized as “subdued.”
Bloomberg reported Thursday that while Q2 saw outflows of client funds totaling $1.4 billion, in Q3 they reached $2.2 billion, according to a company statement. Sales totaled $3 billion, while customers withdrew $5.2 billion.
“The flow environment continues to be challenging and this was reflected in lower sales in the quarter,” Clarke said in the statement. “Investor sentiment, and consequently the outlook for flows, continues to be subdued.” The stock reflected the gloomy news in London trading, dropping as much as 8.1%—its largest intraday fall in 5 months.
Wary investors are hesitating to put their money into hedge funds, which have only gained about 3.6% so far in 2012 compared with gains for the S&P 500 Index—15%—and the Stoxx Europe 600 Index—10%.