Man Group assets under management hit record after 17.5% jump in first half

By Tom Wilson

LONDON (Reuters) -Assets managed by hedge fund Man Group jumped to a record $178.2 billion in the first half of 2024, with the company citing growth in its liquid credit strategies and solid U.S. direct lending.

The performance in the six months to the end of June, which beat the expectations of 10 analysts with an increase of 17.5% over the then-record $151.7 billion the company oversaw at the end of June 2023.

Man Group's shares rose as much as 2.5% on the results.

The London-listed company, which makes money from management fees, posted a six-month core net management fee revenue of $551 million, 19.7% up from $460 million in June last year.

"We have started the year strongly, delivering for our clients in a market environment driven by the evolution of forward interest rates, expectations of technological disruption, and the outcome of elections globally," said Robyn Grew, Man Group's chief executive.

Grew cited a prevailing narrative in the first half of the year of a "Goldilocks" economy, "neither too hot to prolong interest rates at recent highs, nor too cold to hinder growth".

The firm recorded net inflows of $900 million for 2024, down 65% from a year earlier.

Hedge fund performance has been mixed this year as election and political risks surged in Asia, Europe and the United States and central banks take a diverse approach to fighting inflation.

Data firm Hedge Fund Research's (HFR) weighted hedge fund index returned 4.97% to the end of June, underperforming benchmark indices such as the MSCI All Country World Index, which was flat on Friday.

Trend-following peers of Man Group tracked by Societe Generale were up roughly 9% for the year ending in June.

(Reporting by Tom Wilson; Editing by Amanda Cooper and Clarence Fernandez)