Polar Capital Assets Fall 22%, Further Losses Expected

Jan 20 2009 | 2:04am ET

Hedge fund Polar Capital Holdings said its assets under management have fallen by a fifth since April, and that it expects to lose another fifth to redemptions in the first quarter.

The London-based firm said Friday that assets fell by 22% to US$2.45 billion, mostly due to redemptions, which totaled US$347 million. The firm’s hedge funds managed US$1.6 billion at the end of the year, compared to US$2 billion at the end of the first quarter of 2008.

Polar said it expects a further US$500 million in redemptions by the end of March. Nor does the bad news end there: Polar said that it expects another US$400 million in outflows when it finishes liquidating its Paragon fund in the second quarter. The firm is closing Paragon, its biggest hedge fund, because manager Julian Barnett has decided to leave the firm.

Despite the decline in assets, performance fees are expected to rise 19.75% to US$14.41 million in the nine months to Dec. 31.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of