Investors will not forget the first half of 2022 in a hurry. It was the toughest six-month period for a traditional 60-40 portfolio for 90 years. But volatile markets suit computer-driven hedge funds. On Tuesday, London-listed Man Group, which makes heavy use of trend-detecting algos, reported record performance fees — up 42 per cent compared with the first half of 2021.
A pity, then, that its performance was dragged down by the long-only funds — about a third of assets under management. They declined in value by 12.5 per cent. Overall assets under management fell 4 per cent in the half year, as adverse currency movements compounded the investment losses.
Moreover, there has been a pick-up in redemptions since May. Net client inflows amounted to just $100mn in the quarter to June. The explanation, Man says, was that clients needed to raise cash to meet demands elsewhere in their portfolios. They left the door ajar on their way out: 90 per cent of the redemptions were partial.