STOCKS NEWS EUROPE-Man Group up on fund NAV, broker note

Wed Apr 7, 2010 8:33am BST

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Shares in hedge fund firm Man Group (EMG.L) surge 6.6 percent, hitting a more than two-month high and topping Britain's FTSE 100 .FTSE gainers' list, after its main fund AHL posted a 3.8 percent rise in net asset value last week.

Man Group shares are also boosted by a "buy" rating initiation from Execution Noble.

"Given AHL's historical track record, performance will come back, but it is difficult to say when. Until then a dividend yield of 12 percent compensates for the wait," the broker says.

"At 252 pence, even based on our below consensus estimates, the risk reward is extremely favourable and hence we initiate with a buy recommendation and fair value of 300 pence."

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