Ferox, a UK hedge fund manager founded by ex-JP Morgan trader Jeremy Hermann, has recorded a fall in income for the second year in a row while other firms have been expanding.

The manager's income had fallen to £7.5m (€10.8m) in the 12 months to the end of November 2006, from £9.7m the previous year, according to the financial statements just filed by Ferox Capital Management Limited at Companies House. Turnover is 77% lower than it was in the year to November 2004, when it reached £32.6m, its highest level.