At the end of March 2010, Polar Capital’s technology funds represented 32% of assets managed, with $815m out of a total of $2.5bn. This rose to 36% at the end of March this year, with $1.4bn contributing to an increased $3.9bn of total assets managed.
Three new strategies contributed $431m thanks to its acquisition of HIM Capital in September 2010 that brought its financials capability ($296m), the launch of its global emerging markets fund for the team it recruited from Axa Framlington led by William Calvert ($96m) and its ALVA Global Convertibles Fund launched in November 2010 ($39m).
Another staple for Polar Capital, Healthcare Opportunities, rose from $78m to $233m while its Japan Fund rose from $682m to $1.1bn. In fact the only area to show a loss in assets under management was the UK, falling from $206m to $170m.
About this, Tom Bartlam, chairman of Polar Capital, said: “The UK funds have disappointed. After an encouraging 2008 and 2009 they had a frustrating 2010 and the strategy’s performance so far in 2011 has been weak. Our macro strategy continued to struggle and the Discovery Fund was eventually closed in January which was a disappointment to all concerned.”
Pre-tax profit was up £9.2m compared to £3.1m in the 2010 financial year, as profits before share-based payments and intangible asset amortisation/impairment grew form £3.7m to £10.2m.
Looking ahead, the company’s chief executive Tom Woolley said the three-pronged strategy of increasing assets in existing products, growing the range of products offered by our existing teams, and the acquisition and recruitment of additional investment teams is to continue.
“We will continue to look for exceptional investment talent although it is unlikely we will add teams at the pace we did in the previous year,” he said. “I would though hope to add one or two more proven teams by the end of our fiscal year. Our original vision when we established Polar was to have ten to twelve investment teams and that still feels a sensible number for which to aim.”
