U.K.-based investment company LumX Group Ltd. decided to ask the country's financial regulator to cancel its mutual fund license after racking up $43 million in losses since 2015, Financial News reported Oct. 2.
The company's manager, Arpad Busson, said the move was partly triggered by the uncertainty around Brexit, according to the report. The hedge fund group also recently gave up its mutual fund license in Switzerland.
LumX posted losses of $3.9 million in the six months to June-end, but the company's gross revenues grew 16% to $4.5 million. Costs fell 28% to $5.8 million on an annual basis, driven mainly by reductions in its staff, which now numbers 38 people versus 139 at the beginning of 2015, the report said.
The investment firm has also shifted its focus from being a fund of funds to providing risk analysis through a new unit called LumRisk. The unit raised $7.4 million in May from unnamed "professional investors," the newspaper reported.
According to Busson, LumRisk posted $2 million in profits in the first half of 2019, a 151% increase over the first half of 2018, according to the report.
