Bloomberg- Shares of Man Group Plc, the world’s largest publicly traded hedge fund company, posted their biggest two-day drop ever as investors shunned companies that rely on stock markets.
Shareholders are pulling money out of fund managers as subprime mortgage contagion and hedge-fund losses halted a three- day rally and sent brokerage shares to their worst rout since 2002. Having sold a majority stake in its MF Global futures brokerage last month, Man Group is now more exposed to swings in securities markets. A spokesman declined to comment.
Man Group indefinitely delayed plans to sell shares of Man Dual Absolute Return Fund in the U.S. because of volatile markets, Reuters said today. London-based Man Group told regulators in May that it was planning to list the fund in September, the report said. The shares fell as much as 8.5 percent, adding to yesterday’s 6.7 percent drop.
“Now it’s a pure hedge fund,” said Samir Shah, an analyst at Teather & Greenwood in London, who has a “buy” rating on the stock. “Its shares will reflect the market in general,” and will fall by more because of its use of leverage, he said.
