Hedge fund manager HFA Holdings has calmed fears over a slump in its share price, telling investors it expects to exceed market forecasts with an anticipated half-year net profit of $9 million.
Net inflows of $39 million for January continued the year-to-date trend of positive inflows, the company said yesterday. Its profit results for the six months to December 2007 are due to be released on February 28.
Macquarie Group, Merrill Lynch and UBS analysts on average have forecast a half-year profit of $5.9 million for the hedge fund.
HFA chief executive Spencer Young said the company took “the recent erosion of the company’s share price very seriously”.
“January was an extremely volatile month for domestic and international investment markets,” Young said.
“We remain committed to all our previous statements that the merger with [United States hedge fund] Lighthouse will deliver significant value for shareholders and do not believe the current share price accurately reflects the operational performance or the opportunities available to the company.”
HFA made a $707 million cash and scrip offer for Lighthouse in July and completed the sale in January.
HFA shares reached a high of almost $2.80 last July but fell 11 per cent last month following the recent market slump amid speculation the manager still had investments in embattled listed property trust MFS.
The company, which dropped MFS in 2006, said it had no operating or business relationship with MFS or any of its entities.
It said it was well placed to deliver strong profit growth for the full year to June 30.
Deutsche Bank forecast a full-year profit of $21.2 million for the hedge fund, while UBS forecast $36.7 million.
