Perpetual is shaking off its reputation as just a long-term holder of value stocks thanks to senior hedge fund style managers who are exerting their influence across the investment business, chief executive officer Geoff Lloyd said.

Mr Lloyd, who revealed a 10 per cent rise in interim profit to $64.4 million on Thursday, highlighted the increased prominence of the firm's long-short strategy within its broader investment process as significant since volatility returned to equity markets.