Cuts to operating costs allowed Mavrix Fund Management Inc. to reduce its net loss in the fourth quarter of 2008.

The company posted a net loss of $985,004, or 11¢ share, for the quarter ended Dec. 31, 2008. That compared to loss of $1.3 million, or 15¢ a share, a year ago.

Revenue totaled $1.6 million, compared with $3.1 million in the fourth quarter of 2007.

Marvix said the year-over-year decrease was primarily the result of the decline in assets under management.

Total expenses for the fourth quarter were $2.6 million, a 31% decrease over the prior year. The decline mainly reflects reduced selling,
general, administration and other expenses.

During the quarter Mavrix Mutual Funds had net redemptions of $17.1 million on gross sales of $6.4 million. This compares with $29.3 million in net redemptions on gross sales of $16.3 million for the same period in 2007.

“In light of the unprecedented market volatility this past year, we took steps to reduce our operating cost structure in the near term, while ensuring we continue to deliver a focused line up of actively managed niche products,” said Mal Spooner, President and CEO of Mavrix.

“When market conditions do improve, we believe we have the right team and strategy in place. In 2009, we plan to grow with solid performance in existing products, by expanding our advisor network and by gaining new mandates for ppecialty, or flow-through, funds,” he added.

IE