Reech Alternative Investment Management is making some cutbacks in the wake of a difficult year.
The London-based hedge fund has halved the number of staff members it has registered with the U.K. Financial Services Authority in the past six months. The firm now has just eight FSA-listed staff members.
"We are restructuring the business to its core focus, and have reduced costs like a lot of companies recently," firm founder Christopher Reech told Financial News. "The restructuring, which we have undertaken in light of the hedge fund market over the last 18 months, has been well-received by clients."
"A certain number of people in institutional sales have been asked to leave, because the institutional business was difficult and we are hiring more sales people to cover the UCITS fund market," he continued.
Reech and the firm's co-owners last year gave it a capital injection last year, pouring £530,000 into Reech AIM. The firm lost £2.8 million in 2010.
As for how long such a situation would remain tenable, Reech told FN, "not for centuries, but I can carry on for a while."
Reech AIM's funds lost between 10% and 16% last year. This year, Reech said that its funds have gained between 4% and 10%.