The hedge fund industry may have reached the $1 trillion (€830m) mark in terms of assets under management but not all managers have found it easy to profit from its expansion.

Integrated Asset Management, which was taken over in 2000 by Emanuel Arbib, now chief executive, made its first operating profit of £200,000 for the year ended December 2003, compared with a £1.2m operating loss the year before. The company, listed on the UK's Alternative Investment Market, continues to run at a loss of almost £800,000 after goodwill, amortisation and net interest payable, but the stock market has taken a rosy view of its prospects.