Shares in asset management firm Man Group (EMG) jumped 7% higher to 217p after the group reported strong net inflows of $5.3 billion, the highest figure for any quarter in a decade and exceeding analysts’ forecasts.
Today’s third quarter update reinforces the positive momentum highlighted at the group’s interim results announced on July 28th that surpassed consensus expectations. It also validates the group’s ability to monetise strong periods of investment performance.
A DIFFERENTIATED BUSINESS MODE
Man Group has succeeded in attracting flows to a very active, differentiated product-set. It has a unique business model that uses technology to generate hard to replicate products. This is possible due to the group’s thirty years of quant investing experience.
It employs over 550 quants and technologists worldwide who capture over 150 billion data points every week, and is the top ranked alternative manager in Europe and on Github.
Shore Capital analyst Paul McGinnis said despite the share price moving ahead by 45% year to date, ‘we still see Man Group as grossly undervalued by the market.’
Income investors will take comfort from the prospective 6.3% dividend yield.