Man Group adjusts Q2 2022 investment outlook amid market volatility

Man Group has issued its Q2 2022 outlook, signaling a preference for quantitative strategies, convertible arbitrage, and global macro as markets grapple with high inflation and geopolitical instability. The firm noted that the first quarter’s decline in both equity and bond markets reflects a challenging environment that necessitates high liquidity and simplified portfolio structures.

Quantitative strategies—specifically trend following and commodity-focused models—are viewed as well-positioned to benefit from rising interest rates and commodity price volatility. Man Group also highlighted convertible arbitrage as a favorable area given the current climate of market fluctuations. Conversely, the firm has downgraded its outlook for event-driven strategies, warning that aggressive market selloffs typically create liquidity risks that undermine these types of trades.

While the firm remains positive on global macro, it acknowledged that high investor demand has made securing capacity with top-tier managers increasingly difficult. Meanwhile, Man Group maintains a neutral stance on equity long-short and corporate credit, noting that current market conditions do not yet justify a change in sentiment.