By Nell Mackenzie
LONDON, Feb 26 (Reuters) – Man Group shares fell on Thursday after the London- listed hedge fund posted a rise in assets under management by over a third to a new record, but profits fell against a backdrop of market volaility during the first half of 2025.
The hedge fund posted a 35% increase in assets under management to a record $227.6 billion during 2025 but saw a 14% fall in profit before tax to $407 million, beating analyst expectations on both counts.
“There was a challenging uphill struggle in the first half of the year and then a second half that was very strong,” CEO Robyn Grew told Reuters on a phone call.
The results surpassed analyst expectations which had anticipated a rise in assets to $225 billion and a profit before tax of $342.9 million, according to Jefferies.
Man Group shares were last down around 2.5%.
Hedge fund returns in 2025 displayed a stark divide between those that were able to navigate U.S. President Donald Trump’s erratic decision making and switch tactics quickly and those hemmed in by algorithmic strategies.
This was evident in several of Man Group’s strategies which range from discretionary stock and bond picking to systematic hedge funds that ride market trends until they peter out.
Systematic hedge fund peers reached mid-year, on average, down over 11% by the end of May.
This cohort finished 2025 with an average 2.4% return, according to Societe Generale.
Several of Man Group’s systematic funds particularly some of its AHL flagship funds finished the year over 5%, the results showed.
Man Strategies 1783, the hedge fund’s multistrategy vehicle which trades many strategies under one roof, ended the year up 14%.
Hedge funds tracked by research firm, PivotalPath which covers the wider industry returned around 12% in 2025.
Man Group, which makes money from management fees, posted total core net management fees down around 2% to $1.1 billion from 2024.
The firm’s headcount also fell slightly to 1,719 as of end December from 1,777 in 2024, the firm’s annual report showed.
Deutsche Bank analysts said on Thursday Man Group shares remained inexpensive considering the management and performance fee profits as well as the dividends that analysts expect the firm to continue to distribute.
(Reporting by Nell Mackenzie and Simone Lobo; Editing by Dhara Ranasinghe)
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