Liquid Alternatives: Man Group Anticipates Higher Demand For Liquid Alternatives This Year
The stock of Man Group surged after the hedge fund giant declared its results.
Man Group (LON: EMG), one of the largest publicly traded hedge funds, has reported higher pre-tax profit in 2022, up from 2021, and raised its core net revenue by 14%. The UK-based asset manager has said that it expects more demand for liquid alternative strategies this year after delivering positive returns for investors from the strategy in 2022. (MarketWatch)
Man Group is one of the largest liquid alternative providers globally. Approximately 41% of the company’s alternative assets under management have daily or weekly liquidity terms.
“All things being equal, that should naturally lead to more demand in 2023 for liquid alternatives, especially as so many other investments lost money last year, and that’s certainly reflected in the client conversations I’ve had going around the world this year,” Man Group CEO Luke Ellis told analysts on a morning earnings call on Tuesday.
He added that the UK government’s mini-fiscal budget last September was a “perfect manifestation” of the role liquid alternatives can play in an investment portfolio. The rout in the British gilt markets led to billions of pounds of collateral calls on investments into liability-driven investment (LDI) funds by UK pension funds.
The firm’s investment is spread across a variety of systematic and discretionary strategies, including equity long/short, fundamental macro, and credit.
Meanwhile, shareholders will receive a final dividend of 10.1 cents per share for the year.
Related Story: Man Group Reports Alternatives Funds AUM At $77.2B
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