14 Jun 2011
Total assets under management at Polar Capital, a diversified investment group with expertise in technology, equities and hedge funds, soared to over $4.3 billion at the end of May, nearly double the level at March 31, 2010. The firm has also expanded to the US with the late 2010 launch of a convertibles hedge fund based in Connecticut.
Polar hedge fund products include UK Absolute Return, a UCITS III long/short equity fund set up in 2008, which manages about $170 million. Its largest hedge fund is the hard closed European Forager Fund, a small cap European long/short equity vehicle with assets of $500 million. In January, Polar returned about $250 million to investor when it shuttered a macro fund, causing hedge fund AUM to fall to about $820 million.
Polar’s other hedge funds include the European Conviction Fund, a large cap long/short equity fund managing just over $100 million. In November 2010 it launched the ALVA Global Convertibles fund with $40 million in seed capital from the firm’s balance sheet and managers. The new hedge fund has gained around 8% in its first half-year.
Polar recruited David Keetley and Steve McCormick to be the lead managers of ALVA from Bicis Capital, a New York-based multi-strategy fund. Keetley is based in Polar’s London office, while McCormick has opened a US outpost for Polar in Connecticut.
Polar hedge fund products include UK Absolute Return, a UCITS III long/short equity fund set up in 2008, which manages about $170 million. Its largest hedge fund is the hard closed European Forager Fund, a small cap European long/short equity vehicle with assets of $500 million. In January, Polar returned about $250 million to investor when it shuttered a macro fund, causing hedge fund AUM to fall to about $820 million.
“One thing that has happened since the crisis is that investors are doing more due diligence into (asset management companies’) infrastructure and reputation,” said Tim Woolley, chief executive of Polar. “People are paying attention to the viability of the corporate entity. People didn’t perhaps pay enough attention to this before the financial crisis. With the industry growing up I think you will get brands developing around operational integrity and the strength of a manager’s financial position.”The health of Polar’s financial position is reflected in the group reporting shareholder funds of £43.3 million, up from £36.1 million a year ago, including cash and investments of £48.6 million. Pre-tax profit tripled to £9.2 million and Polar has already earned £1.5 million in net performance fees in the financial year that began on April 1.
Polar’s other hedge funds include the European Conviction Fund, a large cap long/short equity fund managing just over $100 million. In November 2010 it launched the ALVA Global Convertibles fund with $40 million in seed capital from the firm’s balance sheet and managers. The new hedge fund has gained around 8% in its first half-year.
Polar recruited David Keetley and Steve McCormick to be the lead managers of ALVA from Bicis Capital, a New York-based multi-strategy fund. Keetley is based in Polar’s London office, while McCormick has opened a US outpost for Polar in Connecticut.
“We are hopeful that the fund will start to attract inflows as we progress through the new financial year,” said Woolley. “The team undoubtedly have the expertise and capacity to launch additional product in due course.”Polar professes to be agnostic about regulatory change. The firm has been registered with the Securities and Exchange Commission for over five years and most of its investors in the Forager fund are US-based.
“We are committed to both businesses,” said Woolley, regarding its long-only and hedge fund offerings. “The long only world is still large and viable and funds will be in demand as long as you have differentiated products. It is the same for the hedge fund business. Both types of business have lots of opportunity. The key is to perform.”
