Jerome Favre/Bloomberg NewsPeter Clarke, chief executive of the Man Group, has tried to stamp out speculation that the firm could be a takeover target. LONDON — The struggling hedge fund Man Group announced a management change on Tuesday at the firm’s flagship product as the firm looked to stem an outflow of investor money.
The London-based company, one of the world’s largest publicly traded hedge funds, said Douglas Greenig would become chief risk officer at the AHL fund, which uses a proprietary computer-driven strategy.
The appointment of Mr. Greenig comes after the Man Group had poor results during the first three months of the year. The AHL fund lost 2 percent in the period, and its average assets remain 14 percent below the level they need to achieve before the firm can begin to charge lucrative performance fees. The fund was down 6 percent last year.
Mr. Greenig succeeds Matthew Sargaison, who will become the AHL fund’s chief investment officer.
The appointment of Mr. Greenig comes as pressure mounts on the Man Group’s chief executive, Peter Clarke, to halt the firm’s weak performance, which has led to a 64 percent decline in the company’s share price in the last 12 months. Shares in the Man Group fell 3.3 percent in afternoon trading in London on Tuesday.
Concerns about the Man Group’s future growth have led many investors to pull their money from the firm. In the first quarter, more than $1 billion in client money left the company’s funds.
The Man Group’s lackluster growth has also led to speculation it may become a takeover target for a buyer looking to pick up an asset management firm on the cheap. Last week, Mr. Clarke said the company was not looking for a potential acquirer.
By appointing Mr. Greenig to one of the senior positions at its AHL fund, the Man Group said it was gaining his 20 years of experience in the money management industry. Mr. Greenig previously has worked at RBS Greenwich Capital and Fortress.
“Doug’s substantial trading and risk management experience across a wide range of products and markets, both systematic and discretionary, makes him an invaluable addition,” Tim Wong, AHL’s chief executive, said in a statement.