British hedge fund company Man Group said assets under management had risen to $42 billion by the end of December, up by $3.6 billion from the previous quarter, sending its shares higher on Wednesday. The world's largest listed hedge fund manager's new fund sales for the period were $2.2 billion, it said in a trading statement. Man's fortunes are closely watched as a barometer of the world's $1.0 trillion hedge fund industry, which saw a relatively lacklustre year of returns in 2004 due to lack of volatility and trendless markets.
The company's ability to increase assets after a relatively difficult year for the hedge fund sector augured well for the coming year, Man Chief Executive Stanley Fink told Reuters.
"We had seen 50 percent per annum growth for a few years but we have told markets that this (growth rate) would shrink," Fink said. "At the end of a year when we had mixed performance and maturity of a large fund, we are very pleased."
Shares in Man had risen 2.2 percent to 1,403 pence by 1315 GMT.
Analysts were cheered by data showing Man's assets held on behalf of institutions such as pension funds, which offer lower profit margins, had not increased as a share of the total at the expense of more lucrative private business.
Private investors accounted for $24.5 billion of all assets, with institutions taking $17.5 billion.
"The mix between individual and institutional assets is fairly constant," said Jason Streets, analyst at UBS Warburg.
The firm looks on track to raise total assets to about $45 billion by its financial year-end in March, Streets said.
Man Group's business has expanded rapidly although performance of some of its funds, including its flagship AHL managed futures unit, hit headwinds in 2004.
The company's ability to increase its assets and retain a steady slice of private investor business bodes well for the future, said Geoff Miller, analyst at broker Bridgewell Securities.
"It looks reasonable and funds under management are on an upward track," Miller said.
Man Group said redemptions remained at "the low end of annualised long-term experience", at $1.3 billion.
In a statement in November last year, Man said assets under management had stood at $39.1 billion. It reported a profit before tax, goodwill amortisation and exceptional items of $318 million pounds for its interim period.
Last year the firm said it was not up for sale nor had it received any bid offers, following a jump in its share price in October on speculation it had received an offer from a US investment bank.
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