The challenges facing the new boss of Man Group were revealed last night following latest figures showing the hedge fund plunging to a loss.
It also emerged that the employee arrested as part of an insider dealing probe on Wednesday was among its star fund managers.
Manny Roman using his first day as chief executive delivered a frank assessment of the year under predecessor Peter Clarke saying '2012 was a tough year for Man' that saw the company's shares fall 40 per cent.
He added, trading conditions remained challenging as markets continued domination by political uncertainties in Europe and the US.
The firm had been hammered in the past 12 months with its performance dipping dramatically and investors withdrawing billions of pounds protesting poor returns from its key AHL fund.
The company exited the FTSE 100 suffering a protest vote on executive pay last year.