Cazenove profits fall as hedge fund fees down 96%

Cazenove Capital Management saw pre-tax profits dip £9.5m last year on the back of a 96% fall in hedge fund performance fees, despite a 30% increase in revenue from its wealth management arm.

The firm's annual report for 2010 showed profit before tax was £13.9m, down from £23.4m at the end of 2009. A fall in hedge fund performance fees from £14.7m in 2009 to £600,000 at the end of 2010 was a drag on profits. However, excluding performance fees, revenues were 24% higher on the back of a strong year from the firm's private wealth management arm and charity businesses. Cazenove also had to pay out £2.6m pre-tax for the FSCS levy, compared with £44,000 the year before. The group said: "The most unexpected and undeserved extraordinary item was an FSCS levy to compensate c...