Hedge fund rises 4pc as US property bet pays off

Hedge fund giant Man Group shot up after reporting that the total funds it runs for investors grew 10pc in the first three months of 2017.

Shares rose to their highest level in a year following the announcement, bringing the firm’s total 2017 gains to 27.3pc.

The results mark an impressive turnaround for the manager, which saw performance fee revenues fall to £63.2m in 2016, compared to £235.7m in 2015 due to ‘difficult market conditions’.

The company put its strong performance down to positive currency movements and its acquisition of US property investment firm Aalto in January, which added £1.4bn to total funds. Shares rose 4.4pc, or 6.4p, to 150.8p. Fellow FTSe 250 member Aca

cia Mining had a howler. The Tanzanian gold producer has been hit by a ban on the export of gold and copper ore, which accounts for around 30pc of revenues.

In its results for the first quarter, Acacia said it would reassess the operations of its two affected mines over the coming weeks if the ban is not lifted.

It has continued to operate as normal despite the ban, introduced in March, stockpiling product. But this has reduced cash flow by around £25.7m and reduced sales by nearly 35,000 ounces.

The ban could also force the firm to repay advanced payments that it has already accepted.

First quarter core profits rose 25pc to £64m and gold production jumped 15pc to 219,670 ounces.

The share price slipped 8.4pc, or 38.4p, to 417.3p.

After two days of large losses on the back of the strong pound, the FTSE finished the day flat. It was up just 0.1pc, or 4.18 points, to 7118.54.

Among the biggest winners was advertising giant WPP, which rose ahead of its first- quarter results next week.

The firm was boosted when rival Publicis revealed a drop in underlying sales of just 1.2pc, outperforming analysts’ expectations of a 1.9pc dip.

However, its North American sales dropped by 5pc and shares in the firm, run by Martin Sorrell, rose 0.9pc, or 15p, to 1701p.

Modern Water soared after announcing the sale of its seawater desalination technology to a Chinese firm.

The fresh water company will license its technology and provide engineering support to Hangzhou Water, which is part-owned by the Chinese government.

Shares were lifted 22.8pc, or 2.25p, to 12.12p, their highest level in nearly two years.

Former mining firm Shearwater slid after placing 200m shares to part-fund its acquisition of security software provider Securenvoy. The acquisition will cost £20m, with £10m paid in cash and £10m through the shares, priced at 5p each, which will be paid to Securenvoy’s co-founders Andrew Kemshall and Stephen Watts.

The acquisition marks Shearwater’s first purchase since chairman david Williams outlined plans in January to sell the firm’s gold and tungsten mining assets to invest in small cybersecurity firms.

The company’s shares fell 12.3pc, or 0.6p, to 4.28p. Surveillance firm Digital Barri

ers shot up after securing a £5.6m contract to provide equipment to an unnamed, ‘major’ US federal law enforcement agency.

It follows several smaller contracts awarded to the firm by the US government this month worth £630,000 and brings its total contracted sales for the current financial year to £15m.

digital’s shares rose by 1.7pc, or 0.5p, to 30p.