Sparx Suffers Second-Straight Annual Loss

May 15 2012 | 12:35pm ET

One of Asia's largest hedge funds saw its fiscal year loss grow by almost 23% on lower revenues and fee income.

Sparx Group, once the region's largest hedge fund but now only its second-largest, said its annual loss was ¥4.54 billion (US$57 million) for the year-ended March 31. It is Tokyo-based Sparx's second-straight annual loss; the firm took a ¥3.7 billion in the prior fiscal year.

Sparx's revenue dropped 37% to ¥4.49 billion as assets under management fell 20% to ¥535.4 billion and performance fees plummeted 78% to ¥454 million. Management fees dropped 21% to ¥3.8 billion.

The loss is especially disheartening amidst Sparx CEO Shuhei Abe's cost-cutting measures, which have included layoffs.

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