Profits down 83pc at troubled hedgie Marshall Wace

Marion Dakers
LONDON-BASED hedge fund Marshall Wace saw its profit and bonus pool plunge 83 per cent last year, as the firm’s investments reeled from the continuing global financial crisis.

The firm made £66.6m in fees for the 12 months to February, according to papers filed at Companies House, leading to a pool of £45.5m to be shared between members.

Marshall Wace’s fund managers shared £261.4m in the previous reporting period between September 2007 and February 2009, on the back of £315.5m in fees.

The £45.5m profit was shared between 10 members of the company, including founders Paul Marshall and Ian Wace. The report said the highest-paid member made £34.3m, compared with £88.8m in the previous results.

Turnover made on UK and Guernsey-based activities fell 90 per cent to £4.6m, while fees
from the rest of the world tumbled 77 per cent to £62m.

The firm has an estimated £4bn under management, up slightly from the doldrums of 2009 but still well below the estimates of £8.5bn in 2008.

The firm, which was founded in 1998, gave just over £21,557 to charity in the year, compared to £4.5m in the 12 months to February 2009.