Shares in Man Group this morning slumped to a new low this year, falling 5.3 per cent on speculation that the world's largest hedge fund manager is delaying a New York flotation because of worsening market conditions.

The London-based fund's shares fell to 499p in early trading this morning. Their previous low point was 513.5p in March. Man Group's stock has fallen from 613.5p since late July.

Man Group had been expected to list its Man Dual Absolute Return Fund next month, in a deal due to be underwritten by Morgan Stanley that would have opened up the possibility for private individuals to invest in a hedge fund.

However, it has been reported that Man Group has put its plans on hold as concern continues to escalate over the true impact of the collapsing American sub-prime mortgage market on the global financial markets.

A spokesman for Man Group declined to comment.

When Man Group floated MG Global, its brokerage business, in New York it had to cut the price from a target of $39 to an issue price of $30 a share.

At the time, Peter Clarke, chief executive at Man Group, blamed investors fears of a credit crunch for the lacklustre initial public offering, which valued MF Global at $3.8 billion compared to the $5 billion capitalisation Man Group had sought. MF Global's shares closed 5 per cent down last night at $24.70 on the New York Stock Exchange.

Man Group’s $18.5 billion (£9 billion) AHL Diversified Futures Fund, one of the most publicly visible funds, fell 6.7 per cent in the week to July 27.

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