Shares in HFA Holdings have nearly halved in value since their May highs as the hedge fund holdings firm deals with volatility in global markets and a restructure of its internal ranks. At the end of November, HFA significantly lowered its earnings guidance for the half-year ending December 31, 2011, triggering a 7.6 per cent sell-off of the company’s stock. Earnings before interest, tax, depreciation and amortisation is expected to come in between $US3 million and $US4 million, compared with $US 10.1 million for the previous corresponding period. HFA attributes some of the reduced guidance to the expansion of its US subsidiary, Lighthouse Investment Partners, where a review is under way of its compensation structure to ensure staff are remunerated in line with industry. HFA reported group assets under management and advice of $US5.13 billion after accounting for net outflows of $US158.2 million. In the six months to June 30, the firm had inflows of $US425.7 million.