Fulcrum Asset Management, a UK hedge fund management firm co-founded by former BBC chairman Gavyn Davies, has made a profit of almost £9m (€13.4m) in its first full year of conducting an investment business, more than reversing a previous loss.

The firm recorded a profit of £8.5m for the year ended March 31 2006, according to the accounts of Fulcrum Asset Management LLP, a partnership, just published at the UK's Companies House.