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
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: Trainee Consultant - Surrey / South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Ashdown Group: Trainee Consultant - Surrey/ South West London

£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...

Recruitment Genius: Client Services Assistant

£18000 - £20000 per annum: Recruitment Genius: A Client Services Assistant is ...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Day In a Page

No postcode? No vote

Floating voters

How living on a houseboat meant I didn't officially 'exist'
Louis Theroux's affable Englishman routine begins to wear thin

By Reason of Insanity

Louis Theroux's affable Englishman routine begins to wear thin
Power dressing is back – but no shoulderpads!

Power dressing is back

But banish all thoughts of Eighties shoulderpads
Spanish stone-age cave paintings 'under threat' after being re-opened to the public

Spanish stone-age cave paintings in Altamira 'under threat'

Caves were re-opened to the public
'I was the bookies’ favourite to be first to leave the Cabinet'

Vince Cable interview

'I was the bookies’ favourite to be first to leave the Cabinet'
Election 2015: How many of the Government's coalition agreement promises have been kept?

Promises, promises

But how many coalition agreement pledges have been kept?
The Gaza fisherman who built his own reef - and was shot dead there by an Israeli gunboat

The death of a Gaza fisherman

He built his own reef, and was fatally shot there by an Israeli gunboat
Saudi Arabia's airstrikes in Yemen are fuelling the Gulf's fire

Saudi airstrikes are fuelling the Gulf's fire

Arab intervention in Yemen risks entrenching Sunni-Shia divide and handing a victory to Isis, says Patrick Cockburn
Zayn Malik's departure from One Direction shows the perils of fame in the age of social media

The only direction Zayn could go

We wince at the anguish of One Direction's fans, but Malik's departure shows the perils of fame in the age of social media
Young Magician of the Year 2015: Meet the schoolgirl from Newcastle who has her heart set on being the competition's first female winner

Spells like teen spirit

A 16-year-old from Newcastle has set her heart on being the first female to win Young Magician of the Year. Jonathan Owen meets her
Jonathan Anderson: If fashion is a cycle, this young man knows just how to ride it

If fashion is a cycle, this young man knows just how to ride it

British designer Jonathan Anderson is putting his stamp on venerable house Loewe
Number plates scheme could provide a licence to offend in the land of the free

Licence to offend in the land of the free

Cash-strapped states have hit on a way of making money out of drivers that may be in collision with the First Amendment, says Rupert Cornwell
From farm to fork: Meet the Cornish fishermen, vegetable-growers and butchers causing a stir in London's top restaurants

From farm to fork in Cornwall

One man is bringing together Cornwall's most accomplished growers, fishermen and butchers with London's best chefs to put the finest, freshest produce on the plates of some of the country’s best restaurants
Robert Parker interview: The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes

Robert Parker interview

The world's top wine critic on tasting 10,000 bottles a year, absurd drinking notes and New World wannabes
Don't believe the stereotype - or should you?

Don't believe the stereotype - or should you?

We exaggerate regional traits and turn them into jokes - and those on the receiving end are in on it too, says DJ Taylor