RE: Where's the High Water Mark?5 Dec 2014 10:42
Thanks dduck and Bigel for your replies.
Looking at the "prices and performance" link that I gave in my first post, the AHL funds appear to be running at prices between 105 - 120, e.g.Man AHL Diversity GBP is priced today at 121.24 which is the highest price of the ones shown there so if the high water mark is 1.28 or high 120s/low 130s we're not quite there yet with these?
Bigel - when you refer to previously 1.28 and now knocking around high 1.4's and dduck - when you refer to 1.28, are you referring to the EMG shareprice. As I understand it this is different to the high water mark of the individual funds that Man Group owns/manages? I may be wrong here and happy to be corrected if I am wrong or have mis-understood?
The H1 results state that AHL Evolution is yielding performance fees but does not say anything about performance fees in relation to the other AHL funds so I'm guessing this backs up the case that we're not quite there with them, except for Evolution which I think is quite a new fund?
I agree with you Bigel that this could become a compelling dividend payer - I note at the H1 results that performance fee profit was $65m of a total $148m, the rest was management fees. Man have said they intend to pay out at least all the management fee profit so as the performance fees continue to come in this will give them alot of spare cash sloshing around and management has said that they would look at using this to increase dividend or start share buy backs.
I was fortunate to buy into this in the 70s when the "blood was running down the streets" but I do not particularly feel the need to top-slice or take any profits just yet as I can see this continuing to perform well.
Again, I'd be interested and grateful to hear any other views or further comments.