UK hedge fund manager London Diversified made a profit of £32m (€37m) last year despite recording a 76% drop in its income, but has since had to cut staff as a result of investors taking their money away.

The firm, founded by former JP Morgan traders David Gorton and Rob Standing, saw its income fall from £141m to £34m in the year ended 31 August 2009, according to the financial statements of London Diversified Fund Management LLP just published at Companies House.