Odey Asset Management, the investment management firm founded by veteran fund manager Crispin Odey, reduced its stake in Man Group (LON:EMG) after the stock price of the hedge fund declined in recent months.
Odey Asset Management Cut Its Stockholdings
According to a report from Reuters, Odey Asset Management cut its stockholdings on shares of Man Group (LON:EMG) to 6.72 percent. The investment management firm sold some of its stake in Man Group at a price range of 77.6 pence to 85.8 pence per share last Thursday. The stock is trading around 80.85 pence per share on Monday in London.
Odey Asset Management increased its stake in Man Group (LON:EMG) to 7.37 percent last month. The investment management firm initiated a position in its fellow hedge fund in October last year, and acquired a 5 percent stake worth £75 million. Since then, Odey purchased more shares of Man Group, and made profits from its investment in the first five months of this year when the stock went up.
Man Group’s Stock Price Declined
However, the stock price of Man Group (NYSE:EMG) declined by 40 percent since May 22 after its flagship AHL computer-driven fund suffered steep performance losses amid a sell-off in bond and equity markets. AHL fund lost 8.9 percent in a week through June 3, and 3.1 percent in the previous week.
Most of the revenues to Man Group (NYSE:EMG) still depend on the performance of AHL fund, despite its effort to diversify its revenue streams. The company also reshuffled its management team and named Emmanuel Roman as the new CEO to help boost the hedge funds profitability.
Several analysts issued warnings over the past several weeks that the surge of price for Man Group (LON:EMG) stock was overdone.
Odey Asset Management, which currently has $8.9 billion in assets under management (AUM), is one of the top performing hedge funds in 2013. The investment management firm posted 25 percent returns until May 14 this year. Last year, its returns were 30 percent.
Since the inception of Odey Management, the flagship Odey European gained 14x and it is 7x higher than the benchmark indices since 1992.