Pretax profits at hedge fund manager ACM rise 170%

Absolute Capital Management (ACM), the listed hedge fund manager headed by Donegal man, Séan Ewing, has reported a 170 per cent jump in pretax profits for the year ended December 31st.

The firm said yesterday that it had recorded profits of €15.7 million for the year, up from €5.8 million in 2004. This came as turnover rose by 208 per cent to €30.5 million.

Mr Ewing, who is chairman and chief executive of ACM, said the firm's rapid growth reflected its record as "consistently strong performers".

Unlike many other fund managers, ACM focuses on building absolute returns rather than gains measured relative to overall market performance.

This approach proved popular in 2005, with funds under management at the company growing by 114 per cent from $393 million (€320 million) to $841 million over the year.

Mr Ewing said further increases since the end of the year had lifted the company over $1 billion. At the end of March, funds under management stood at $1.085 billion.

A breakdown of the assets under management figure shows that last year's $448 million increase was comprised of net inflows of $324 million and a positive investment result of $124 million.

All of ACM's funds performed either in line with or in excess of their targeted performance, according to Mr Ewing.

"A number of the funds performed exceptionally," he said. Shareholders were told the firm had a strong base from which it could continue to grow this year.

Mr Ewing said ACM's margins have been among the highest of any asset management business because of its "very low cost base". The company plans to add to its portfolio of funds over coming months.

ACM listed on London's AIM market at the start of March, stating the intention of paying regular dividends. No payout was declared yesterday, however.

Shares in ACM rose by 12p to close at 257p in London last night.