LONDON, Feb 26 - Man Group recorded a substantial increase in assets under management during 2025, yet the London-listed hedge fund's profitability declined amid a volatile market environment.
The firm said assets under management rose 35% to a new high of $227.6 billion for the year, while profit before tax fell 14% to $407 million. Those outcomes surpassed analysts' projections: Jefferies had expected assets of $225 billion and a pre-tax profit of $342.9 million.
Shares in Man Group were trading lower following the announcement, last down around 2.5%.
Commenting on the year's trajectory, CEO Robyn Grew said on a phone call that "there was a challenging uphill struggle in the first half of the year and then a second half that was very strong." The firm described a split performance across its strategy set, with discretionary stock and bond selection on one hand and systematic trend-following approaches on the other.
Industry dynamics in 2025 highlighted a divergence among hedge funds. The report noted that the year exposed a clear divide between managers who were able to adapt quickly to U.S. President Donald Trump’s erratic decision making and those constrained by algorithmic approaches. That split showed up in returns data: systematic hedge fund peers were, on average, down more than 11% by the end of May, later finishing the year with an average return of 2.4%, according to Societe Generale.
Within Man Group's own lineup, several systematic strategies - including some of its AHL flagship funds - finished the year with gains in excess of 5%, the company reported. Its multistrategy vehicle, Man Strategies 1783, ended the year up 14%. Broader hedge fund coverage by research firm PivotalPath returned around 12% in 2025.
On the fee side, Man Group's core net management fees fell by roughly 2% to $1.1 billion compared with 2024. The firm's headcount declined modestly to 1,719 at the end of December, down from 1,777 the prior year, according to the annual report.
Analysts at Deutsche Bank said on Thursday that Man Group shares still appeared inexpensive when taking into account the management and performance fee earnings as well as the dividends that analysts expect the firm to continue to distribute.
Overall, the company combined a record level of assets under management with softer profitability and lower core management fee revenue, reflecting a year in which different strategies performed unevenly across market regimes.
Performance highlights
- Assets under management: up 35% to $227.6 billion in 2025.
- Profit before tax: down 14% to $407 million.
- Core net management fees: down about 2% to $1.1 billion.