Polar Sees Hedge Fund Outflows, Mutual Fund Inflows

Dec 15 2011 | 1:15pm ET

Investors continue to shower Polar Capital with new money as the year draws to a close, but they are shying away from the London-based money manager’s hedge funds.

Polar said that its assets under management rose 9% in October and November to reach US$4.28 billion. The firm booked the increase despite a US$73 million net outflow from its hedge funds, which have taken a hit in 2011, during the second and third quarters. In particular, its U.K. hedge fund has performed poorly this year, losing 12%, although its European long/short funds are up.

“The hedge fund environment in regard to net flows has been pretty tough,” CEO Tim Woolley told Reuters. “We hope we’ve reached a nadir in terms of net outflows.”

Luckily for Polar, investors can’t get enough of its mutual funds, which saw 10 times as much in inflows as its hedge funds suffered in outflows. All told, Polar’s mutual funds took in US$706 million in net sales over the six months ended in September.

It all adds up to £4.8 million in adjusted profits for that period, more than double Polar’s profit from the year-earlier period.


In Depth

The Benefits Of Private Debt Investing

May 7 2015 | 10:43am ET

Jeffrey Haas is chief operating officer of Old Hill Partners Inc., an SEC-registered...

Lifestyle

Yale Receives $150 Million Gift from Blackstone’s Schwarzman

May 12 2015 | 12:10am ET

Yale University announced it has received a $150 million gift from Blackstone Group...

Guest Contributor

How To Generate 6% Yield In A Volatile World

May 22 2015 | 6:41am ET

Private credit comes in many different flavors, all with the common themes of over...

 

Editor's Note