Hard-Hit Hedge Funds Slam Investcorp

Feb 13 2012 | 4:52am ET

Last year was a bad one for hedge fund investors, and global asset manager Investcorp didn't escape the carnage.

The alternative investments firm said that its fiscal first-half profit plummeted more than 90%, battered by the performance of its hedge fund portfolio. The firm earned just US$5.3 million in the six months ended Dec. 31, down from US$56.2 million in the year-earlier period.

The dramatic profit drop-off was attributed almost entirely to declining hedge fund revenue. Indeed, Investcorp's client business activities and corporate investment asset-backed fees rose during the half.

"We are significantly readjusting our positioning to hedge funds and giving greater allocation to portfolio insurance," CFO Rishi Kapoor said. "We've taken aggressive moves to protect against the impact of hedge funds."


In Depth

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...