Assets under management at Man Group, the world's largest listed hedge fund, fell by $5.6bn (£4.2bn) in the first two weeks of April to $167bn, as market volatility hit the asset manager’s strategies, according to a report by City AM.

The London-based firm had ended Q1 2025 on a strong note, with AUM climbing from $168.6bn to $172.6bn, buoyed by $3.6bn in net inflows — largely into its credit and convertibles strategies. But that momentum quickly reversed in early April, dragging total AUM back down to $167bn, according to the groups latest trading update.

While many traditional asset managers in the UK reported Q1 losses tied to equity market declines — Polar Capital, for instance, disclosed losses of up to £2.3bn — Man’s drop caught analysts off guard. As an alternatives-focused player, it was expected to show resilience. Deutsche Bank had projected just $1.4bn in net flows and a modest $2.7bn boost from performance and FX.

Instead, Man suffered $1.1bn in performance-related losses during Q1, primarily due to weakness across its flagship systematic hedge fund strategies.

Four AHL-branded quantitative funds – Alpha, Dimension, Evolution, and Diversified – posted significant drawdowns, m with the AHL Diversified strategy, in particular, slumping 8% in Q1 and is now down over 18% on a 12-month basis.

Despite the headline performance woes, Man Group remains a revenue-generating powerhouse. The firm reported an impressive $1bn in run-rate net management fees through mid-April, signalling continued fee resilience even amid asset contraction.