* Hedge fund manager lone FTSE 100 casualty
* Babcock International promoted from midcaps
By Jon Hopkins
LONDON, June 6 (Reuters) - Hedge fund manager Man Group will be demoted from Britain's FTSE 100 following the index's latest quarterly review, with Babcock International moving the other way from the midcaps, index provider FTSE said on Wednesday.
Man Group shares have nearly halved in value since the last FTSE review in March, with clients withdrawing money from the group's funds as markets were roiled by the euro zone debt crisis.
Shares in defence services firm Babcock have gained nearly 15 percent over the same period, boosted by expectations that government austerity policies will benefit the company, which owns the Devonport dockyard where British navy submarines are maintained.
Companies outside the FTSE 100 that grow to rank among the 90 largest by market capitalisation are automatically promoted into the blue chip index, while the FTSE 100 firms with the lowest value or that fall to 111th spot or below drop into the FTSE Midcap 250 index.
Man Group shares were in 156th place, while Babcock was placed 83rd, based on market capitalisation data for Friday's close, according to Thomson Reuters Starmine data.
This quarter's review used the closing prices from Friday, rather than the usual Tuesday closing prices because of this week's two UK bank holidays, but the changes had to be confirmed by a FTSE committee on Wednesday.
Daily Mail & General Trust's A shares will be deleted from the FTSE 250 index, being ineligible for continued inclusion in the FTSE UK Index series following its re-classification to a Standard listing.
As Daily Mail's ordinary shares are not included in the FTSE indices because they continue to fail the indexes provider's liquidity criteria test, the newspaper publisher will no longer be represented in the FTSE UK Index series.
Eight additions will be made to the FTSE 250 index, with Dechra Pharmaceuticals, GlobeOp Financial Services, Bank of Georgia Holdings, John Menzies, NMC Health, Raven Russia , Ted Baker, and Utilico Emerging Markets all joining.
Going the other way, Anglo Pacific Group, Exillon Energy, JPMorgan Russian Securities, Kesa Electricals, Lamprell , Northgate, and Supergroup will all be demoted to the FTSE Small Caps index.
All the index changes will be implemented from the start of business on June 18.