CLIENTS of Man Group, the London-listed hedge fund group, have lost about $280 million (£150 million) from the implosion of the hedge fund manager Amaranth Advisors, The Times has learnt. The worst-hit clients, who include wealthy individuals and institutional investors, had as much as 5 per cent of their portfolios invested in Amaranth.

However, most were hit much less heavily. The average Man client with the average portfolio has seen their capital reduced by about 0.5 per cent.

The United States-based Amaranth lost $6 billion of $9 billion it managed on behalf of clients after being wrong-footed by prices in the natural gas market two weeks ago.

The Man client losses from Amaranth are the biggest disclosed so far, although clients of the fund-of-fund divisions of some of the biggest investment banks are thought to have lost more. Man Group revealed yesterday that, overall, its clients had sustained investment losses of $500 million in three months.

While clients were losing money, Man was attracting substantial new investment. Sales of hedge fund products for the half-year to September reached $10.4 billion, almost three times the $3.7 billion won in the first half of 2005.

Man shares were marked 4¾p higher to 448p as the company said that its first-half profits before tax and exceptionals would be above the average City forecast of $691 million.

Man is understood to have raised concerns several months ago with Amaranth about the size of its exposure to the natural gas market. Man is considering its legal options.

Clients of Morgan Stanley and listed hedge fund vehicles managed by Goldman Sachs and Kleinwort Benson have also disclosed Amaranth losses.

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