Crosby closes more funds

Crosby Asset Management is closing the last of the funds it acquired after its takeover of Forsyth Partners after heavy losses for the business in 2008.

In the year-end results released today, Simon Fry, the chief executive at Crosby, says that 2008 was a challenging year for the firm. At the end of December 2008, total assets under management had fallen from $2.5 billion (£1.8 billion) to $500m, and losses totalled $56.5m.

“We started the year still working to contain and develop the Forsyth Partners business, which the company had acquired in September 2007,” Fry says.

“Our timing for the acquisition was far from ideal and as the global financial markets continued to deteriorate in the first quarter of 2008, the company’s focus shifted from trying to revive Forsyth to limiting the operating losses and closing those funds which were uneconomical or had little chance of being revived,” he adds.

In the second half of last year, Crosby closed the Forsyth range of Ucits and hybrid funds and sold the international research and ratings service to Old Broad Street Research (OBSR).

Increasing redemption requests from the fund of hedge funds Crosby inherited from the Forsyth deal have forced the group to close the vehicles.

“The company has decided it is prudent to abandon CAM’s previous plans for the consolidation and remarketing of the remaining Crosby Forsyth fund of hedge fund offerings and, instead, to close them. When this is completed, virtually the entire range of Crosby Forsyth funds will have been closed,” Fry says.

Crosby’s asset management business is now made up of the fledgling joint venture Apollo Multi-Asset Management and Crosby’s Managed Balanced fund.

Fry says he is disappointed by the results, but adds the group will continue trying to reduce its liabilities and rebuild the business with the aim of returning value to shareholders.