Man Group, the world’s largest listed hedge fund company, said funds under management at the end of 2011 fell to $58.4 billion from $64.5 billion at the end of September that year, while the firm logged net outflows of $2.5 billion in the final three months of last year.

The London-listed firm suffered an adverse market movement of $1.5 billion. Its flagship AHL Diversified business fell 7.7 per cent in the quarter, although its GLG business enjoyed “positive overall performance”, the firm said in a statement today.

Foreign exchange and other negative movements amounted to $2.1 billion, it said.

In general, the world’s $2 trillion-plus hedge fund industry suffered a difficult year in 2011, as volatility from developments such as fears about the eurozone hit returns in some strategies.

Man Group said final results for 2011 will be issued on 1 March.

Separately, Man said that Noam Gottesman, a founding partner and principal of GLG Partners - now part of the Man empire - has stepped down as co-chief executive of GLG and has taken on the role of non-executive chairman of GLG’s business and interests in the US. Manny Roman continues as sole CEO of GLG and chief operating officer of Man Group.