* Assets under management $3.94 bln vs $3.88 bln at end-March
* Net fund inflows $633 mln in 6 months to end-Sept, $160 mln in last quarter
* Says remains cautious on outlook for net inflows
LONDON, Oct 13 (Reuters) - Fund manager Polar Capital enjoyed net inflows of $160 million over the three months to end-September, as sales of its mutual funds helped it buck a recent trend of fund firms losing clients amid high market volatility.
The firm said assets under management, on which fund firms earn fees, rose nearly 2 percent to $3.94 billion over the six months to end-September, around the levels it ran in late 2007 before the nadir of the credit crisis.
Whilst clients withdrew cash from its hedge funds over the past six months, the firm saw $706 million of inflows into its long-only funds, more than cancelling out performance losses in this summer's volatile markets.
However, the firm, which in July warned macroeconomic problems in Europe and the United States would hinder future inflows, said it remained "cautious on the outlook for net inflows over the coming quarters".
While Polar's inflows slowed over the past three months, they still stand in sharp contrast to client losses elsewhere.
Last month Man Group , the world's biggest listed hedge fund manager, said clients withdrew money over the summer months at the fastest pace since early 2009 amid "relentless volatility" in world markets.
And Aberdeen reported net outflows of 800 million pounds in the two months to August 30.