Man Group, the world's largest listed hedge fund manager, faces falls of up to 90% in the assets under management of its most important subsidiary, fund of hedge funds business RMF, because of its exposure to alleged fraudster Bernard Madoff, analysts at Morgan Stanley have predicted.

Equity analysts at Morgan Stanley said that, in their base case scenario, "we assume that Man Group sees assets under management shrink by about 75% from its March 2008 peak of $33bn (€26bn) at RMF to about $9bn by March 2011".