Falling hedge-und revenue triggered a 90 per cent decline in half-year profit at Investcorp Bank, a buyout company based in Bahrain that manages more than US$11 billion (Dh40.4bn).
Net income reached $5.3 million in the second half of last year compared with $56.2m in the same period a year earlier.
Investcorp blamed the profit decline on "negative returns on hedge funds" as a result of "drawdowns due to the turbulence caused by the euro-zone crisis".
Investcorp manages funds of high-net-worth individuals and companies from the Gulf region, routing their wealth into investments in Europe, the US and the Middle East.
The company was also behind the flotation of the luxury brands Gucci and Tiffany & Co.
Investcorp also said it signed an agreement to sell Redington International Holdings, a regional distributor of IT and telecommunications products, back to its parent company, Redington India. The sale, expected to be finalised next month, should generate a capital gain of $49.8m.
Investcorp bought a 26 per cent stake in Redington International through its Gulf Opportunity Fund 1 for $65m in 2008.
The company in November made three US property investments totalling $100m, taking its total investments in the US to eight, worth $300m.
Investcorp is one of the 10 largest foreign investors in US property. It focuses on commercial and office space.
Foreign investment in US property has been steadily picking up in the past year as investors look to take advantage of a steep decline in values after the global financial crisis.
Investcorp is looking for properties that are "performing well, have strong anchor tenants and are located in regions with favourable long-term demographic trends", Mazen Al Khatib, the company's managing director, said in an interview with The Nationallast April.
Investcorp has shifted its strategy in recent years to include distressed equity and debt. The company hired John Paulson, who overtook George Soros as the world's top hedge-fund earner in 2007, to establish its Credit Opportunity fund.
halsayegh@thenational.ae
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
The specs
Engine: 4.0-litre V8
Power: 503hp at 6,000rpm
Torque: 685Nm at 2,000rpm
Transmission: 8-speed auto
Price: from Dh850,000
On sale: now
Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
The Brutalist
Director: Brady Corbet
Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn
Rating: 3.5/5
if you go
The flights
Flydubai offers three daily direct flights to Sarajevo and, from June, a daily flight from Thessaloniki from Dubai. A return flight costs from Dhs1,905 including taxes.
The trip
The Travel Scientists are the organisers of the Balkan Ride and several other rallies around the world. The 2018 running of this particular adventure will take place from August 3-11, once again starting in Sarajevo and ending a week later in Thessaloniki. If you’re driving your own vehicle, then entry start from €880 (Dhs 3,900) per person including all accommodation along the route. Contact the Travel Scientists if you wish to hire one of their vehicles.
The specs
Engine: 2x201bhp AC Permanent-magnetic electric
Transmission: n/a
Power: 402bhp
Torque: 659Nm
Price estimate: Dh200,000
On sale: Q3 2022
Killing of Qassem Suleimani
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
if you go
The flights
Etihad, Emirates and Singapore Airlines fly direct from the UAE to Singapore from Dh2,265 return including taxes. The flight takes about 7 hours.
The hotel
Rooms at the M Social Singapore cost from SG $179 (Dh488) per night including taxes.
The tour
Makan Makan Walking group tours costs from SG $90 (Dh245) per person for about three hours. Tailor-made tours can be arranged. For details go to www.woknstroll.com.sg