Man Group, the world’s largest listed hedge fund business, reported a statutory pre-tax profit from continuing operations of $193 million in the nine months to 31 December last year, down from $324 million in the year ended 31 March.

Assets under management at the end of February were estimated at $59.5 billion, up from $58.4 billion at the end of 2011, a result that reflected improved investment performance, partly offset by client withdrawals and other factors, Man Group said in a statement today.

The previous 12 months have been, in general, difficult for hedge fund managers amid uncertainties caused by developments such as the Greek debt crisis. Some of the biggest names in the industry, such as US hedge fund manager John Paulson, who made a fortune by shorting sub-prime debt ahead of the credit crunch of 2008, have reportedly lost money over the past year.

Man Group said its flagship AHL Diversified managed futures vehicle was up 2.5 per cent in the year to 27 February; as at 24 February, two-thirds of its GLG funds range were above or within 5 per cent of their performance fee highs, the firm said.

“Our final results for the nine months to 31 December 2011 are in line with the January trading statement. More recently, we have seen a positive start to the year in the first two months of 2012. Assets under management have increased to around $59.5 billion at the end of February, principally as a result of performance, with strong returns at GLG and a smaller positive contribution from AHL,” said Peter Clarke, Man Group chief executive.

“Investor sentiment has improved compared to the last quarter of 2011 and lower redemptions have driven a significant reduction in the rate of net outflows. But sentiment remains fragile and it is likely to take a longer period of stability in markets and continued performance before this translates into increased sales and net inflows,” he said.