Operating profit at London Diversified Fund Management fell by 35.2% in the 12 months to the end of last August, further bad news for the London hedge fund manager following the 17% loss from its London Select fund so far this year.

London Diversified Fund Management's report and financial statements filed at Companies House noted operating profit at the company fell from £108.80m (€2.3bn) in the year to August 31, 2006, to £70.4m one year later, a decline of 35.2%.