BAHRAIN and London-listed Investcorp swung to a first-half net profit as its hedge fund business recovered from the financial crisis.
Yesterday the investment house said net profit in the six months ended 31 December was $60.2m (£37.1m), after a $511m net loss a year ago.
It said its hedge fund business posted income of $96.6m in the first half versus a loss of $398.1m.
The company that once floated luxury brands icons Gucci and Tiffany posted its first ever loss for the full year 2008 to 2009 as its hedge funds business and portfolio companies came under pressure.
Like a number of investment houses in Bahrain’s off-shore banking sector, it had to raise over $500m in new capital last August.
The steep loss in the first-half of last year was also due to a negative fair value change of its private equity and real estate portfolio of $141.9m, while fair value changes in the six months to December 2009 amounted to an increase of $2.8m.