Absolute return fund manager HFA Holdings has boosted its earnings forecast for the 2008 financial year thanks to favourable market conditions.
It reported net profit after tax of $16.5 million for the six months to December 31, 2007, a 104 per cent increase on the prior corresponding period.
On the back of strong performance, the company updated its full year earnings before interest, tax, depreciation and amortisation (EBITDA) forecast from $52.2 million to $56 million.
This followed an 85 per cent increase in to EBITDA $22.4 million in its half year results.
“With our products demonstrating capital preservation qualities and outperforming key indices we are in a great position to differentiate ourselves and capitalise on the inherent strengths of absolute return investing compared to traditional products,” HFA Holdings chief executive Spencer Young said.
From October 1, 2007, until January 31, 2008, its core investment funds, LHP Diversified Fund and LHP Global Long Short Fund, delivered returns of 0.51 per cent and negative 2.52 per cent, respectively.
In the same period, the S&P500 fell 9.13 per cent, the MSCI declined 10.13 per cent and the ASX 200 declined 13.29 per cent.
HFA’s fund inflow for the financial year to date was approximately $381.7 million.
HFA Asset Management, responsible entity and manager for HFA’s suite of absolute return investment funds, was awarded a $50 million mandate from the Westpac Staff Superannuation Plan this week.
Assets under management increased 5 per cent to $4.07 billion in the six months since 30 June, 2007.
First half earnings include the operations of HFAA only, not those of US absolute return manager Lighthouse Investment Partners. The acquisition was completed on January 3.
Shares closed yesterday at $1.16, up 15.5 cents.
