Hedge fund Man reports better than expected profits

image captionThe Man Group has its HQ in London but has offices in Switzerland

Man Group, the world's second-largest hedge fund manager, has reported better than expected profits for the year to the end of March.

The firm reported pre-tax profits of $324m (£199m) for the period.

The results were down on the previous year because of costs that were associated with the take-over of rival GLG partners.

Investors responded positively to the news. Man shares were up just under 4% by mid-morning on the FTSE 100.

Funds under management increased substantially reaching $69.1bn, largely thanks to the GLG takeover.

The firm says it has received a further $2bn since March, from the launch of a new fund in Japan despite launching shortly after the earthquake.

"The phenomenal success of the Japan AHL launch demonstrates the concerns people had... were completely unfounded," said Man's CEO Peter Clarke.

However, the company admitted that its computer-traded AHL fund struggled this month as commodity stocks fell sharply.

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