Sparx Posts ¥23 Billion Loss As Assets Drop

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.


In Depth

U.S. Treasury Moves on Reinsurance Loophole

Apr 24 2015 | 5:11pm ET

The U.S. Treasury Department has released proposed rules aimed at limiting the ability...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Opportunities Ahead: Asian Fixed Income and Currency Markets

Apr 24 2015 | 6:18am ET

For hedge funds focusing on Asia, the policy uncertainty, unclear interest rate...

 

Editor's Note