Man Group's assets under management (AUM) fell from $172.6bn to $167bn in Q1 2025, triggering a 3.7% share drop on 17 April—its worst single-day fall since 2021.

Initial Q1 growth, including $3.6bn net inflows and $1.5bn gains, was erased by April’s U.S. tariff-driven volatility.

The AHL Diversified programme dropped 8% as data-driven strategies struggled with rapid market changes.

$2bn in global hedge fund outflows during April signalled rising risk aversion.

Analysts (Panmure Liberum, Goldman Sachs) warned of potential earnings downgrades if outflows continue.

Peer firm Polar Capital saw £2.3bn Q1 losses, reinforcing industry-wide pressure.

The sector faces ongoing asset reallocations due to geopolitical and economic instability.

Systematic funds underperformed, surprising investors who rely on them for volatility protection.

Confidence in algorithmic strategies is shaken as macro shocks override models.

Man Group’s Q2 report will be closely watched for signs of stabilisation or continued outflows.

Diversification is key for investors navigating current hedge fund exposures.

Central bank moves and earnings updates from peers will influence sentiment.

Despite setbacks, Man Group remains confident in its tech-led, diversified investment model.

April volatility showed limits of trend-following funds under extreme stress.

Asset managers must stay adaptive and improve risk management strategies.

Investor sentiment has shifted significantly since Q1 highs.

Advisors Gateway provides insights and tailored strategies for turbulent hedge fund environments.

The sharp AUM drop is a wake-up call to hedge fund managers amid shifting market dynamics.

April 2025 marks a challenging yet pivotal moment for reassessing fund strategies.