The acquisition of hedge fund GLG Partners in May 2010 had a largely negative contribution to the company’s performance.
Its alternatives department delivered a mix of positive and negative performance across styles, but was $1.1bn (£0.7bn) negative for the second quarter in total.
Long only performance of GLG also registered a negative market movement of $1.9bn (£1.21bn).
The first half to 30 September still managed to record inflows of $1.1bn (£0.7bn), however, due to positive flows from GLG in the first quarter and from another of its hedge funds AHL across both quarters.
Its latest results show Man Group’s aim to lessen its dependence on computer-driven hedge fund AHL is yet to be realised.
AHL generated $1.5bn (£0.96bn) of positive investment movement in the second quarter, up from $0.9bn (£0.57bn) in the first quarter.
Total funds under management at the period end was $65bn (£41.49bn), down from $71 billion on 30 June (£45.32bn).
Peter Clarke, chief executive of Man Group, said: "As anticipated, investor sentiment continued to weaken across the summer with lower sales in our second quarter and some increase in redemption rates, notably in September.
"Looking ahead, we are assuming that investor appetite will be generally suppressed for the remainder of the year."
