10 Dec 2010
Further proof that the market conditions for asset managers have continued to improve comes in interim financial results from Polar Capital. The long only and hedge fund operator has reported that assets under management jumped to $3.3 billion, up one-third since March.
Polar CEO Tim Woolley says the environment for gaining hedge fund asset should improve in 2011 given the better performance most strategies have recorded in the second half of 2010. Polar expects to be bolstered with the addition of three new teams since September, which are targeting financials, emerging markets and convertibles. It also raised £89 million for the June launch of the Global Healthcare Investment Trust.
The Polar Convertibles Fund launched on November 1 with $30 million and has estimated capacity of $2 billion. It is co-managed by David Keetley in London and Steve McCormick in the US. Until joining Polar earlier this year, the pair managed the convertibles book for multi-strategy fund operator Vicis Capital.
The other additions include the acquisition of HIM Capital to run several long-only financials strategies. As well, William Calvert, who heads a team of three, joined Polar in October to set up and run a global emerging markets fund.
Polar’s hedge fund assets total $800 million, flat from a year ago. Its biggest fund, European Forager, closed earlier this year when assets hit €400 million. Woolley says the closure was the result of being very conscious post-2008 of liquidity constraints that affect specialist small cap long/short equity strategies.
After performing strongly in 2007 and 2008 the firm’s macro fund has had drawdowns but performance is in recovery and that has fuelled inflows in November. Woolley describes the fund’s portfolio managers, whose key focus is forex, as “cautious” on 2011 with a “long term secular view that Western economies will be challenged for the next few years.”
He expects to be bedding down the three new teams over the first-half of 2011 but says Polar may be active in an acquisition on a 12 month view. With balance sheet reserves of £38 million, the firm certainly has the firepower to act should the continuing merry go around among asset managers throw up some enticing opportunities. “We are a boutique so we are always on the lookout,” Woolley says.
Profit before tax and share-based payments recovered to £2.3 million for the six months to Sep 30 following a loss of £400,000 in the same period a year earlier. Polar also declared a first interim dividend of 1.5 pence per share to be payable in January.
Woolley says it is business as usual despite the passage of new regulatory codes in Europe and the US. He noted that Polar had kept up its Securities and Exchange Commission registration even though the US courts had overturned the requirement in 2007.
Polar CEO Tim Woolley says the environment for gaining hedge fund asset should improve in 2011 given the better performance most strategies have recorded in the second half of 2010. Polar expects to be bolstered with the addition of three new teams since September, which are targeting financials, emerging markets and convertibles. It also raised £89 million for the June launch of the Global Healthcare Investment Trust.
“We enter 2011 with a broad range of products to sell,” says Woolley. “The key dynamic on the long only side is what happens to markets which we see continuing to climb the wall of worry. On the hedge fund side, we think the environment for assets should be better in 2011 than 2010.”
The Polar Convertibles Fund launched on November 1 with $30 million and has estimated capacity of $2 billion. It is co-managed by David Keetley in London and Steve McCormick in the US. Until joining Polar earlier this year, the pair managed the convertibles book for multi-strategy fund operator Vicis Capital.
The other additions include the acquisition of HIM Capital to run several long-only financials strategies. As well, William Calvert, who heads a team of three, joined Polar in October to set up and run a global emerging markets fund.
Polar’s hedge fund assets total $800 million, flat from a year ago. Its biggest fund, European Forager, closed earlier this year when assets hit €400 million. Woolley says the closure was the result of being very conscious post-2008 of liquidity constraints that affect specialist small cap long/short equity strategies.
After performing strongly in 2007 and 2008 the firm’s macro fund has had drawdowns but performance is in recovery and that has fuelled inflows in November. Woolley describes the fund’s portfolio managers, whose key focus is forex, as “cautious” on 2011 with a “long term secular view that Western economies will be challenged for the next few years.”
He expects to be bedding down the three new teams over the first-half of 2011 but says Polar may be active in an acquisition on a 12 month view. With balance sheet reserves of £38 million, the firm certainly has the firepower to act should the continuing merry go around among asset managers throw up some enticing opportunities. “We are a boutique so we are always on the lookout,” Woolley says.
Profit before tax and share-based payments recovered to £2.3 million for the six months to Sep 30 following a loss of £400,000 in the same period a year earlier. Polar also declared a first interim dividend of 1.5 pence per share to be payable in January.
Woolley says it is business as usual despite the passage of new regulatory codes in Europe and the US. He noted that Polar had kept up its Securities and Exchange Commission registration even though the US courts had overturned the requirement in 2007.
