Man Group Plc, the biggest publicly traded hedge fund manager said funds under management dropped 21 per cent in the fourth quarter.

Funds under management dropped to $53.3bn at Dec. 31 from $67.6bn at the end of September, the London-based company said in a statement today.

"The outlook for institutional sales remains very subdued in the short term and continued institutional redemptions mean that we will see institutional net outflows until markets stabilise and confidence returns,'' Chief Executive Officer Peter Clarke said in a statement today.