Man-AHL Diversified I L.P. Posts Quarterly Profit

Investment returns swing positive in Q3 as the trading company sees portfolio adjustments and rising NAV.

November 17, 2025

After a shaky start to the year, Man-AHL Diversified I L.P. is showing signs of recovery. The partnership reported $6.6 million in net income for the third quarter of 2025, a notable turnaround from the $8.9 million loss in the same period last year. That gain came on the back of strong trading performance, even as the fund experienced a reduction in assets and continued redemptions from limited partners.

The firm invests nearly all of its capital into Man-AHL Diversified Trading Company L.P., its affiliated master fund. While total partner capital dropped from $76.3 million at year-end to $59.8 million by the end of Q3, the partnership ended the quarter with upward momentum—driven by realized and unrealized gains across futures, forwards, and swaps.

Q3 Results: Trading Gains Drive Rebound

Man-AHL’s recovery this quarter came primarily from $7 million in net gains from trading activities, which more than offset a $366,000 net investment loss driven by operating expenses. The portfolio benefited from stronger positioning in derivative markets—particularly metals, indices, and credit default swaps—while losses in other segments, such as energy and interest rate futures, were more than balanced out.

The fund’s NAV per unit rose across all active series:

Class A Series 1 moved from $4,161.92 to $4,650.03

Class A Series 2 increased from $5,102.36 to $5,718.63

Class B Series 1 climbed from $4,161.75 to $4,649.82

At the trading company level, performance followed the same trajectory. It delivered $17.6 million in net income during the quarter, fueled by $16.3 million in trading gains and $1.3 million in interest income. With 4,903.79 units outstanding at quarter-end, NAV per unit held steady at $28,475.83.

Nine-Month Performance: Losses Persist Year-to-Date

Despite the strong quarter, Man-AHL Diversified I L.P. remains in negative territory for the year. Year-to-date losses totaled $4.1 million, with cumulative redemptions reaching $12.4 million. Most of the outflows came from Class A Series 1 and Class B Series 1 units. Subscriptions were minimal, totaling just $62,000 across all classes.

Returns were also uneven earlier in the year. While Q3 brought gains, earlier quarters were weighed down by losses in trading strategies and broader market volatility. That dynamic reversed as trend-following systems began picking up stronger momentum signals heading into Q3.

Strategy and Structure: Quantitative Trading in a Master-Feeder Framework

Man-AHL Diversified I L.P. is structured as a feeder fund, investing substantially all of its assets in the trading company. As of September 30, it held just over 43% of the trading company’s capital, slightly down from 45% at the end of 2024.

The strategy is managed by AHL Partners LLP, a quantitative trading affiliate of Man Group plc. The AHL Diversified Program, a fully systematic trend-following system, serves as the foundation of the trading approach. This program targets defined volatility levels, with exposures dynamically adjusted based on market conditions, liquidity, and correlation management.

Derivatives remain central to the trading strategy. The fund actively trades global futures, forward contracts, and swaps, with positions spanning interest rates, currencies, commodities, equity indices, and credit. The program’s design emphasizes diversification, disciplined risk management, and intraday execution supported by automated systems.

Costs, Fees, and Partner Economics

Man-AHL’s fee structure includes a 2% management fee and a 1% general partner fee (for certain unit classes), both calculated monthly. An incentive fee of 20% is applied to net new appreciation—but no incentive fees were earned during the nine-month period ending in September.

Additional servicing fees vary by class, and all expenses, including legal and administrative costs, are passed through to the partnership. Those fees were partly responsible for the $863,000 year-to-date investment loss prior to factoring in trading performance.

The fund’s structure includes multiple unit classes (A and B) and series within each class. Class B is reserved for retirement accounts and related vehicles, with lower minimums. No Class B Series 2 units were outstanding at quarter-end.

Liquidity and Redemptions

The fund continues to offer monthly liquidity to investors. As of September 30, redemptions payable stood at $2.6 million. Additional withdrawals totaling $1.9 million were processed after quarter-end. Investors can redeem units with 10 days' written notice, effective at month-end NAV.

Despite lower capital levels, the fund remains fully invested and continues to operate without leverage constraints. There are no restrictions on redemptions from the trading company to the feeder fund, which helps preserve liquidity.

Outlook

Q3 marked a solid recovery for Man-AHL Diversified I L.P. after a challenging start to the year. With momentum in its trading strategies and a well-defined risk framework in place, the fund is better positioned heading into Q4. While partner redemptions have trimmed capital, the strategy has shown it can generate performance in shifting markets.

The next few quarters will test whether this rebound holds. But as of now, the fund is back on its feet—navigating the current landscape with a clear approach and a data-driven strategy guiding the way.