CQS, one of the UK's largest hedge fund managers, reported a 40% increase in turnover to $165m (€114m) last year after improving its investment returns and raising new assets.

The firm increased its turnover from $118m to $165m for the year ended December 13 2006, according to the financial statements of CQS (UK) Limited Liability Partnership, which were published last week at Companies House. Turnover represents management and performance fee income from managing hedge funds.