Man Group shares fall as profits decline, assets hit record

Core Viewpoint - Man Group's shares declined despite a significant increase in assets under management, attributed to a drop in profits amid market volatility in the first half of 2025 [1][2]. Group 1: Financial Performance - Man Group reported a 35% increase in assets under management, reaching a record $227.6 billion in 2025 [1]. - Profit before tax fell by 14% to $407 million, although this figure exceeded analyst expectations [1][2]. - Total core net management fees decreased by approximately 2% to $1.1 billion compared to 2024 [5]. Group 2: Market Context - The hedge fund industry in 2025 showed a divide in performance, with some funds successfully navigating market challenges while others struggled due to algorithmic strategies [3]. - Systematic hedge fund peers averaged a decline of over 11% by the end of May 2025, while Man Group's systematic funds, particularly the AHL flagship funds, finished the year with returns over 5% [3][4]. Group 3: Analyst Insights - Analysts from Jefferies had anticipated assets to rise to $225 billion and profit before tax to be $342.9 million, indicating that Man Group's results surpassed these expectations [2]. - Deutsche Bank analysts noted that Man Group shares remain inexpensive relative to management and performance fee profits, as well as expected dividends [5].