A major London hedge fund experienced mixed results in 2025, with stock prices declining Thursday despite achieving record-breaking asset levels.
Man Group reported that assets under management climbed by 35% to reach an unprecedented $227.6 billion throughout 2025. However, the firm simultaneously witnessed pre-tax profits drop by 14% to $407 million amid turbulent market conditions.
Chief Executive Officer Robyn Grew described the year’s performance during a Reuters interview, stating: “There was a challenging uphill struggle in the first half of the year and then a second half that was very strong.”
The financial results exceeded what industry analysts had predicted. Jefferies research had forecasted assets would grow to $225 billion with pre-tax profits reaching $342.9 million.
Despite outperforming expectations, Man Group’s stock value declined approximately 2.5% on Thursday.
The hedge fund industry in 2025 saw a clear split between firms that could quickly adapt to President Donald Trump’s unpredictable policy decisions and those constrained by automated trading systems.
This division was apparent across Man Group’s various investment approaches, which span from hands-on stock and bond selection to computer-driven hedge funds that follow market momentum until trends reverse.
Computer-based hedge funds industry-wide struggled significantly by mid-2025, with the average systematic fund down more than 11% through May’s end.
However, this same group of funds recovered to finish 2025 with average returns of 2.4%, based on data from Societe Generale.
Multiple Man Group systematic funds, including several AHL flagship offerings, concluded the year with gains exceeding 5%.
The company’s multi-strategy fund, Man Strategies 1783, which combines various trading approaches, finished 2025 with a 14% increase.
Industry research firm PivotalPath reported that hedge funds across the broader sector generated approximately 12% returns in 2025.
Man Group’s revenue from core net management fees decreased roughly 2% to $1.1 billion compared to 2024 figures.
The firm also reduced its workforce slightly, ending December with 1,719 employees compared to 1,777 the previous year, according to the annual report.
Deutsche Bank analysts commented Thursday that Man Group shares remain attractively priced given the company’s management fees, performance-based profits, and expected dividend payments.
