Man Group share price forecast as AUM surges to a record high

Man Group (LON: EMG) share price had its worst day since May after the hedge fund published weak financial results. The stock plunged by more than 5% and retested the support level at $220. In all, the shares dropped by almost 8% from its highest point in June.

Man Group AUM rise

Man Group is one of the biggest hedge funds in the world. It is also one of the few hedge funds that are publicly traded. The company has over $151 million in assets under management and a market cap of over 2.5 billion pounds.

Man Group is a multi-strategy hedge fund that uses a number of approaches to create value to its investors. It invests in equities, fixed income, multi-asset, and real estate. Some of the top strategies the company uses are long-only, long-short, and even private markets.

Man Group operates in a number of divisions, including Man AHL, Numeric, GLS, GPM, and FRM. All these divisions focus on different strategies, with GPM being a specialist in private markets and AHL being a quantitative specialist.

Man Group share price dropped after the company published mixed financial results. On a positive side, the company’s assets under management rose to $151.7 billion from $143.3 billion in December. Its net inflows for the six months to June were $2.6 billion while the performance improved to $5.1 billion.

While its AUM rose, the company’s pre-tax profits dropped from $395 million to $137 million as performance fees fell. Its performance fees came in at just $32 million, down from $404 million a year earlier. 

The company has numerous catalysts ahead, including its focus on private credit. It recently acquired Veragon Capital Partners, an American company that offers these solutions in the middle market. Talking about the deal, Man Group’s new CEO said:

Man Group share price forecast

The four-hour chart shows that the Man Group stock price nosedived after the company published mixed earnings. As it tumbled, the stock tumbled below the key support level at 229p, the lowest level on July 18th. It also dropped below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) moved below the oversold level.

Therefore, the shares will likely continue falling as sellers target the next psychological level at 210p, the lowest level on June 26th. In the long-term, however, Man Group stock will likely rebound as AUM inflow continues.