Diversification has helped UK-quoted Polar Capital increase its assets under management by a half, to almost $4bn (€2.7bn), despite disappointing performance in its two largest strategies.

The UK hedge and traditional fund manager said its assets under management had increased from $2.6bn at the end of September 2006 to $3.8bn a year later. Just under $500m of the increase was in the six months to September this year, and most of that, $350m, came from inflows of new capital.