Friday, 29 May 2015
Last updated 17 hours ago
Jan 27 2010 | 11:04am ET
Hedge funds giveth, and hedge funds taketh away.
Investcorp, the Bahraini-headquartered investment manager and the largest alternative asset manager in the Persian Gulf region, returned to profit in the second half of last year. The firm suffered its first-ever annual loss in its 2008-2009 fiscal year, burned by big losses in both its hedge fund and private equity units. Investcorp’s assets under management plummeted by more than half to less than US$4 billion.
But in the six months ended Dec. 31, Investcorp, which also has offices in London and New York, turned a US$60.2 million first fiscal half profit. In the first fiscal half of 2008, Investcorp suffered a US$511 million loss, on its way to a US$780.6 million annual loss. Alternative investments were a big part of that decline, with Investcorp’s hedge fund unit losing US$393 million and its p.e. arm losing US$288 million.
Now, it’s hedge fund unit isn’t just contributing to Investcorp’s profit; it is Investcorp’s profit. The firm’s hedge fund business posted $96.6 million in income in the first half, more than the entire firm’s profit during the period.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…