UPDATE 4-Man Group sees net inflow from private investors

* Net inflows of $1.9 bln from private investors

* Net institutional outflows $3.3 bln

* Funds under management dip to $43.3 billion at end-June

* Shares up 1.3 pct (Adds comments from AGM)

By Laurence Fletcher

LONDON, July 9 (Reuters) - Man Group (EMG.L), the world's biggest listed hedge fund firm, reported a rise in sales to private investors and said it expects to return to overall net client inflows in its second half, boosting its shares.

In a statement on Thursday, the firm said it attracted net private investor inflows in its first quarter of $1.9 billion into its funds, which aim to deliver positive investment returns whether markets rise or fall. This partly offset net outflows of $3.3 billion from institutions such as pension funds.

"This is a significant positive for the company, especially as gross asset gathering has remained strong even during the worst quarters of the credit crunch," analysts at Bank of America/Merrill Lynch said in a research note.

"Man (stock) is far too cheap for a company where (there) is clear evidence that it retains the ability to generate profitable organic growth," the note said.