By Laurence Fletcher

LONDON (Reuters) - Edinburgh-based hedge and traditional fund boutique SVM Asset Management more than doubled profits in 2007, despite a tough stock market environment, thanks to new business wins.

The firm, headed by high-profile investor Colin McLean, saw pretax profit rise to 2.6 million pounds in 2007, from 1.2 million pounds in 2006, according to a regulatory filing obtained by Reuters.

Its success comes after a tough year for many fund firms -- smaller boutiques and more traditional operators -- after the credit crisis that began last summer led to a surge in market volatility and a drop in investor confidence.

Investor caution has continued into 2008, with many firms warning fund inflows will be hit.

Sales of tax-advantaged Individual Savings Accounts (ISAs) in the traditionally busy ISA season of March and early-April were the worst on record, according to the Investment Management Association.

"On the retail side we brought in more than 110 million pounds (in inflows) and we had institutional wins. Eventually, performance is feeding through into new business and I think it will continue into this year," McLean told Reuters.

"We haven't seen outflows, although certainly inflows are slowing a bit. It's been fairly good so far this year."

Over the year, assets under management rose to 749.3 million pounds from 582.9 million pounds at the end of 2006.