Broker snap: Target price upped for Man Group

1st Jun 2011 12:24

Credit Suisse thinks that the fund raising environment for hedge fund manager Man Group is improving and raises its target price from 250p to 270p.The broker says there is increased demand for hedge funds, and in particular managed futures funds such as AHL (Man's quantitative managed futures manager). "The $2bn raised in Japan for AHL is evidence of the strong demand for AHL based on long-term performance," analysts said.However, Credit Suisse believes that "additional costs outlined at the results as well as the mix effect of adding a full year of GLG [acquired in May 2010] to our management fees needs to be incorporated into modelling assumptions."The broker said it is becoming "more constructive" about the medium-term fund raising outlook, but thinks there continues to be a downside risk to expectations on management fee profit forecasts.A 'neutral' stance is kept.---BC