Robots salvaged the world’s biggest-listed hedge fund Man Group last quarter after the firm’s human stock-pickers were overawed by a global stock-market rout — a fate which also hurt rival fund manager Ashmore.
Man’s computer-driven quant hedge funds, led by a programme called AHL, made $1.2 billion (£774.6 million) last quarter, but its army of hands-on traders reported gloomier numbers after stock markets spiralled out of control in August.
The company, which started life as an 18th-century rum supplier to the Royal Navy, saw assets fall to $76.8 billion from $78.8 billion for the three months ending September 30 despite luring a net $1.4 billion from investors’ pockets.
“Despite the extreme market movements in late August impacting absolute performance across our long-only strategies, we have seen good relative performance across the majority of our strategies for the year to date,” chief executive Manny Roman said.
Problem spots included long-only funds run by recently acquired Boston-based manager Numeric and similar funds managed by fund unit GLG, which both reported negative performance.
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Man’s shares rose 5.60p to 156.64p this morning.
Rival FTSE 250 fund manager Ashmore also continued to be beaten up by sluggish markets.
The firm, led by reclusive millionaire investor Mark Coombs, said assets fell 13% to $51.1 billion from $58.9 billion after investors pulled $4 billion from the company and fund managers lost $3.8 billion.