Hedge fund manager HFA has reported full-year operating EBITDA (earnings before interest, tax, depreciation and amortisation) of $52.65 million, up 5 per cent on the prior year.
HFA’s net operating revenue for the year to 30 June 2009 rose 25 per cent to $95.54 million, which included the first full-year contribution of operating fee revenue from the merger with US-based manager Lighthouse Partners.
HFA chief executive Spencer Young said the increase in underlying earnings was a good result in one of the most challenging environments for business in decades.
“Ultimately, our commitment to good people and sound processes has provided a stable foundation to move forward,” Young said.
The net result for the year was impacted by two major items, including a non-cash impairment of $599.53 million related to a write-down of goodwill arising from the merger with Lighthouse Partners, and a non-cash accounting expense for equity settled transactions of $12.40 million for shares issued to employees under employee incentive plans.
HFA’s funds under management (FUM) fell 29 per cent to $5.62 billion, while assets under management (AUM) fell 34 per cent to $6.16 billion.
Young said the global financial crisis created one of the most difficult operating environments for fund managers in recent history.
“We are proud of the relative strong performance of the group’s flagship funds compared to most major indices during this period, but acknowledge a failure to deliver absolute returns,” he said.
HFA believed the worst of the global financial crisis had passed and that markets were returning to more normal levels of functionality and performance, Young said.
