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Sparx Fly As Asian Hedge Fund Shop Sinks

Asia’s biggest hedge fund firm is feeling the region’s pain. Sparx Group said today that its profits, assets under management and performance have all taken a dive amidst the market crisis.

The firm’s assets under management have plummeted precipitously since peaking two years ago at ¥2 trillion (US$20.4 billion). Spark said that the figure was ¥1.06 trillion (US$10.8 billion) at the end of September, and fell to ¥839.1 billion (US$8.6 billion) in October.

Sparx reported a ¥1.15 billion (US$11.6 million) fiscal first-half loss, as revenue plummeted 48% to ¥6.7 billion (US$68.5 million) in the six months ended Sept. 30. Last year, the firm posted a ¥113 million (US$1.2 million)profit. Management fees fell 28% to ¥6.1 billion (US$62.4 million) and performance fees collapsed by 73%, with Sparx earning just ¥1.2 billion (US$12.3 million) in incentives.

The firm’s flagship Japan Stocks Long Short Fund, which manages ¥2.7 billion (US$27.6 million), has done anything but live up to its nickname, “Best Alpha.” The fund lost 15% this year through Sept. 30.


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