Sebastien Nogier/Reuters
Peter Clarke, chief of Man Group.
LONDON — Man Group, the world’s largest publicly traded hedge fund, said on Wednesday that its funds under management fell 9.5 percent, to $58.4 billion, in final three months of 2011, as investors withdrew money in response to volatility in financial markets.
The company, based in London, said it was looking to reduce costs by a further $75 million over the next two years. That comes on top of $40 million in savings Man Group had already announced for 2012.
The company said it would provide further details on its cost savings at the beginning of March.
Performance in AHL Diversified, the primary fund in Man Group’s computer-driven trading division, dropped 7.7 percent during the final quarter of 2011. The fall, which mostly occurred in October, was due to volatility in the stock, bond and currency markets, the company said.
In total, the hedge fund experienced $1.5 billion in investment losses over the period, as well as a further $2.1 billion in other outgoings, such as foreign exchange fluctuations.
“Trading conditions have been tough for Man in the second half of 2011,” the company’s chief executive, Peter Clarke, said in a statement. “Investment performance varied significantly across styles, with market volatility and reduced market liquidity impacting trading opportunities.”
In late-morning trading in London on Wednesday, Man Group’s shares were up 5.5 percent. Over the last 12 months, the company’s stock price has fallen more than 60 percent.
Investors withdrew $5.6 billion from the company’s funds in the fourth quarter, according to a statement, while there were $7.3 billion in redemptions in the three months through Sept. 30.
The fourth-quarter decline was somewhat offset by $3.1 billion of inflows into Man Group’s funds during the period.