Man Group executives move in for shares

Man, which last year bought rival GLG to diversify its business, surprised markets on Wednesday with news that clients had withdrawn a net $2.6bn (£1.66bn) in assets over the three months to end-September, much higher than analysts had forecast.

Meanwhile, total assets under management, on which it earns fees, dropped to $65bn from $71bn.

However, yesterday chief executive Peter Clarke, finance director Kevin Hayes, and chief operating office Emmanuel Roman each spent £88,100 on 50,000 shares at 176.2p each.

And non-executive director Ruud Hendriks spent £177,400 on 100,000 shares at 177.4p.

In a note following the trading statement, broker Numis rated the shares a buy, saying that Man’s dividend, offering a yield of at least 7.8 per cent, was unlikely to be cut.

However, Citi cut its rating from buy to hold and said Man’s “lack of forecast earnings momentum” meant its valuation was not justified.

On Wednesday, Man had said withdrawals accelerated in September, making the latest quarter the worst for the group since shortly after the collapse of US investment bank Lehman Brothers.

Man’s trading update raised the possibility of heavy client outflows across the hedge fund industry, which has recovered strongly after the credit crisis in 2008 and 2009.