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MANAMA Jan 27 Bahrain- and London-listed Investcorp INVB.BH INVBq.L swung to a first-half net profit as its hedge fund business recovered from the financial crisis.
On Wednesday, the investment house said net profit in the six months ended Dec 31. was $60.2 million, after a $511 million net loss a year ago.
It said its hedge fund business posted income of $96.6 million in the first half versus a loss of $398.1 million.
The company that once floated luxury brands icons Gucci GUCG.PK and Tiffany (TIF.N) posted its first ever loss for the full year 2008/2009 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 $500 million in new capital last August.
The steep loss in the first-half of last year was also due a negative fair value change of its private equity and real estate portfolio of $141.9 million, while fair value changes in the six months to December 2009 amounted to an increase of $2.8 million. (Reporting by Frederik Richter; Editing by Anshuman Daga)