Jupiter's de Blonay sells down Man after ‘mistaken’ purchase

Jupiter Financial Opportunities manager Guy de Blonay has said his purchase of Man Group was a “mistake” and he has sold down the position.

Man, the second largest faller in the FTSE 100 year to date behind Lloyds Banking Group, made up 2.5% of the £543m Jupiter Financial Opportunities fund as of 30 September but de Blonay said he had been surprised by the outflows seen at GLG.

"We took a hit on Man Group. That was a big mistake. The GLG acquisition seems to be a classic case of good money chasing bad."

The stock fell 25% on 28 September after Man said it expected funds under management to have fallen from $71bn to $65bn during Q3. Its share price is currently down 51% year-to-date to 143p from a high of 295p.

The company confirmed last week in its interim results that AUM had fallen to $64.5bn by the end of the quarter, and had fallen to a further $1bn by the end of October.

Sentiment was further knocked in October when Man revealed AHL, its flagship computer-driven portfolio, fell by 5.5% in the first week of the month as markets rallied, dashing hopes it would reach its high watermark and hence start accruing performance fees.

"The surprisingly high level of outflows seen in the GLG side of the business is pretty concerning, especially if AHL cannot deliver on its promise," de Blonay said.

"We are hearing a lot of reassurance that the company will continue to honour and protect its decision, but we have reduced our position."