Neptune Investment Management saw its pre-tax profit decline considerably in 2012 after focusing too much on cyclical stocks, founder Robin Geffen has said.
The group’s pre-tax profit fell to £12.8m last year, a loss of almost 40 per cent from 2011’s pre-tax profit of £21.1m.
“...our sectoral weightings in 2012 were too geared towards cyclical plays in materials and industrials and we were underweight the recovery of financials given their poor fundamentals”, Mr Geffen said.
Assets under management also fell by 7.5 per cent to £5.8bn.
The chief executive said it had been “another challenging year for both Neptune and the fund management industry as a whole”.
“In the long term our clients will only meet their objectives by investing in real assets, such as equities, and they, like us, need be robust and risk aware in dealing with the shorter term volatility that capital markets continue to exhibit,” Mr Geffen said.
“I am confident that Neptune remains committed to this objective and am deeply grateful for the support we receive from our shareholders, clients and the wider Neptune team.”