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

Hedge Funds Take Interest In ‘Soft Deposits’

Nov 19 2014 | 11:56am ET

New York-based Winchester Equities, headed by Avi Benamu and Jack Hazan, funds soft...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.