Hedge revival slows drain on Man funds

A rapid recovery in hedge fund performances in the past few months has seen a sharp fall in institutional investors withdrawing their money from Man Group.

In the three months to the end of June, institutions withdrew $3.6 billion (£2.2 billion) from London-based hedge fund manager Man which was similar to the previous two quarters. But in the quarter just started, where institutions who wanted to redeem holdings got their cash on 1 July, withdrawals halved to $1.8 billion.

While institutions have yet to become major buyers of hedge funds, private punters have moved back in with sales of $3.4 billion outstripping redemptions of $1.5 billion.

Chief executive Peter Clarke said: "With positive industry returns so far this year... we are well placed to grow our market share."

Man's total funds under management fell from $46.8 billion to $43.3 billion in the last three months.