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Polar Capital Sees Assets Up, Performance Fees Down

Hedge fund Polar Capital said its assets rose by almost half over the past nine months. But even though a good chunk of that increase was due to performance, performance fees plummeted.

All told, the British hedge fund saw US$378 million in net inflows over the past three quarters—US$267 million in the final quarter of 2009 alone. Combined with US$403 million in positive performance and currency movements, Polar now manages US$2.169 billion, 47% more than it did at the end of March.

The inflows were evenly split between Polar’s hedge funds and its long-only offerings.

“Looking into 2010, despite the possibility of challenging markets, the company is well-placed to attract further inflows on the back of the good long- and short-term performance of its funds,” the firm said.

That should also help it earn a few more pounds in performance fees: Polar earned just US$2.3 million in incentive fees during the same period as the inflows, down 76% from the US$9.7 million it earned a year earlier.