Pre-tax profits at Bedlam Asset Management, the maverick UK fund manager, have risen by more than 400% to £1.5m (€2.2m) in the first six months of this year.

The boutique, named after a London asylum, saw its funds under management rise by 40% to £203m from December 31 and by 186% since last year's interim results. Nigel Johnson-Hill, chairman of Bedlam, said he saw no reason why the firm could not quadruple assets under management over the next two years. He said: "I can see few reasons why by the end of June 2008, the company should not be managing £800m." Bedlam recruited Michael Comras from pension consultancy Aspen Group as chief financial officer in June to help with expansion. It launched a mixed UK and global equity fund in May targeting high net worth investors, which has attracted £22m. Bedlam is the brainchild of managing director Jonathan Compton, who said rival firms were "lazy, sharp and misleading". It has promised not to collect fees from clients until performance secures a positive 1.25% return in any quarter. Compton said the commitment to align the interests of shareholders, staff and clients continued. He said: "We remain as keen as ever to avoid the usual fund management model of asset gathering and bloated management structures. These can lead to an increase in profit but waning profitability."