Market Report: Man's fans rush for shares as funds flow

Traders couldn't quite believe their eyes. Struggling hedge fund Man Group has finally reported funds are coming in rather than going out. The City had predicted outflows of $1.3bn ( £0.81bn) due to the poor performance of its AHL fund but it actually revealed a better than expected third quarter.

Net inflows reached $0.7bn – the first quarterly inflow of funds for two years.

Investors were so happy with the news they pushed it up more than 3.5 per cent – 2.95p to 85.85p.

Despite the jubilation it wasn't all good news for the world's biggest listed hedge fund manager. The funds were moving in the right direction but the quality of the flows was weaker – the inflows were mainly those into its GLG fund, which has lower margins for the group.

Total funds under management edged up from $52bn to $52.5bn in the quarter and chief executive Manny Roman said he remained "cautious in our outlook for asset flows going forward in the light of continued uncertainty in the macro-economic environment."

Jonathan Jackson, head of equities at broker Killik & Co, said: "On the face of it, the shares remain cheap. However, the stock is not suitable for all types of investor and should be considered high risk. In order to invest, you need to believe in the long-term growth prospects of the alternative investment industry and, in particular, the ability of the AHL trend-following programme to deliver performance. The shares are likely to remain volatile, and driven by general market sentiment, the direction of net asset flows and the performance of AHL."

The wider market was downbeat during most of the day as the debt and budget deal in the US was largely viewed as just delaying the inevitable.

Patrick Latchford at foreign exchange broker Monex Capital said: "The expectation of a resolution in Washington was sufficient to cheer US equities on Wednesday but as the reality of this only being a temporary solution sinks in, we're back with a weakening US dollar and stock markets under pressure."

After a mini rally on Wednesday the FTSE 100 clung on to gains and added 4.57 points to 6,576.16.

Top of the table was BSkyB at a 12-year high after a good first quarter update. It broadcast a 62p, or 7 per cent, rise to 940p.

Another strong contender was beer brewer SABMiller when it reported growth in emerging markets - boosted by Africa - was offsetting its weaker European business. First-half revenues rose 4 per cent and it put on 127p to 3,167p.

Over on the mid-tier index Russia-based precious metals miner Polymetal said falling metal prices meant sales edged down 2 per cent year-on-year to $518m.

But it is on track to hit production targets this year and was 45p brighter at 570p – top of the mid-tier table.

Near the other end of the index was Rank Group which disappointed investors with a profit warning.

The casino and bingo group, majority-owned by Malaysia's Guoco Group, said it will cut costs and warned its half-year profit will be hit by a fall at its bingo business.

The group failed to get a full house at its 97 bingo clubs because the hot summer weather tempted people away.

Not only were regulars not visiting clubs, but fewer were spending time indoors betting as sales at its online bingo business fell by 3 per cent. The City laid down its cards and it tumbled 4p to 150p.

Cash-and-carry group Booker produced a 0.8p rise to 141.9p as its results beat analysts' expectations.

Outsourcing and distribution company Bunzl added 5p to 1,334p after it announced that it had bought Mexican catering distributor Pro Epta and its third-quarter update was in line with forecasts.

Royal Mail's strong share performance slowed slightly but it still added another 5p to 480p.

Struggling Finnish nickel miner Talvivaara had a rare day of popularity – blamed on a short seller squeeze – was 1.27p better at 5.62p.

The long-awaited US listing for Bollywood movie distributor Eros International is going ahead. Its AIM shares will be cancelled the day after its admission in New York, which is due from 4 November.

The group, which distributes films starring the likes of actress Chitrangada Singh, was static at 242.5p.

Start your day with The Independent, sign up for daily news emails
Arts and Entertainment
Ramsay Bolton in Game of Thrones
tvSeries 5, Episode 3 review
News
peoplePair enliven the Emirates bore-draw
Arts and Entertainment
tv
News
Britain's opposition Labour Party leader Ed Miliband (R) and Boris Johnson, mayor of London, talk on the Andrew Marr show in London April 26
General electionAndrew Marr forced to intervene as Boris and Miliband clash on TV
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Treasury Assistant - Accounts Assistant - London, Old Street

£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Business Analyst - Financial Services - City, London

£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...

Day In a Page

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

Not even the 'putrid throat' could stop the Ross Poldark swoon-fest'

How a costume drama became a Sunday night staple
Miliband promises no stamp duty for first-time buyers as he pushes Tories on housing

Miliband promises no stamp duty for first-time buyers

Labour leader pushes Tories on housing
Aviation history is littered with grand failures - from the the Bristol Brabazon to Concorde - but what went wrong with the SuperJumbo?

Aviation history is littered with grand failures

But what went wrong with the SuperJumbo?
Fear of Putin, Islamists and immigration is giving rise to a new generation of Soviet-style 'iron curtains' right across Europe

Fortress Europe?

Fear of Putin, Islamists and immigration is giving rise to a new generation of 'iron curtains'
Never mind what you're wearing, it's what you're reclining on

Never mind what you're wearing

It's what you're reclining on that matters
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband

Chuka Umunna: A virus of racism runs through Ukip

The shadow business secretary on the benefits of immigration, humility – and his leader Ed Miliband
Yemen crisis: This exotic war will soon become Europe's problem

Yemen's exotic war will soon affect Europe

Terrorism and boatloads of desperate migrants will be the outcome of the Saudi air campaign, says Patrick Cockburn
Marginal Streets project aims to document voters in the run-up to the General Election

Marginal Streets project documents voters

Independent photographers Joseph Fox and Orlando Gili are uploading two portraits of constituents to their website for each day of the campaign
Game of Thrones: Visit the real-life kingdom of Westeros to see where violent history ends and telly tourism begins

The real-life kingdom of Westeros

Is there something a little uncomfortable about Game of Thrones shooting in Northern Ireland?
How to survive a social-media mauling, by the tough women of Twitter

How to survive a Twitter mauling

Mary Beard, Caroline Criado-Perez, Louise Mensch, Bunny La Roche and Courtney Barrasford reveal how to trounce the trolls
Gallipoli centenary: At dawn, the young remember the young who perished in one of the First World War's bloodiest battles

At dawn, the young remember the young

A century ago, soldiers of the Empire – many no more than boys – spilt on to Gallipoli’s beaches. On this 100th Anzac Day, there are personal, poetic tributes to their sacrifice
Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves

Follow the money as never before

Dissent is slowly building against the billions spent on presidential campaigns – even among politicians themselves, reports Rupert Cornwell
Samuel West interview: The actor and director on austerity, unionisation, and not mentioning his famous parents

Samuel West interview

The actor and director on austerity, unionisation, and not mentioning his famous parents
General Election 2015: Imagine if the leading political parties were fashion labels

Imagine if the leading political parties were fashion labels

Fashion editor, Alexander Fury, on what the leaders' appearances tell us about them
Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

Phumzile Mlambo-Ngcuka: Home can be the unsafest place for women

The architect of the HeForShe movement and head of UN Women on the world's failure to combat domestic violence