Sunday, 21 September 2014
Last updated 1 day ago
May 20 2009 | 9:15am ET
Asia’s largest hedge fund manager lost ¥23.3 billion (US$242 million) in the year ended March 31, as revenue fell more than 70% and assets under management dropped more than 40%.
The Tokyo-based firm had posted a ¥3.2 billion (US$33.2 million) profit in the fiscal year ended March 2008. But its assets under management have plummeted to ¥674 billion (US$7 billion) from ¥2 trillion (US$20.8 billion) less than three years ago. Management fees fell along with Sparx’s asset level, dropping 38% in the fiscal year to ¥9.75 billion yen (US$101.3 million), while performance fees collapsed, falling 82% to ¥2.32 billion (US$24.1 million), due to poor performance.
All told, revenue fell 76% to ¥7.3 billion (US$75.8 million), down from ¥30.6 billion (US$317.8 million) in fiscal 2007.
Sparx has announced big cost cuts in an effort to combat its declining fortunes, closing its London office and slashing its U.S. business. It also cut executive pay and asked 20 employees to retire. All told, the cuts will save ¥2.5 billion (US$26 million) per year.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.