Fourth-quarter outflows shrunk Gottex Fund Management’s asset base, but the Swiss fund of hedge funds shop expressed confidence that 2010 will bring renewed inflows.
Total fee-earning assets at the firm dropped 1.2% to US$8.13 billion, the firm said yesterday. All told, assets under management fell by 2.1%, as the firm was hit by US$270 million in outflows from run-off share classes and further redemptions of US$250 million.
Subscriptions in the fourth quarter totaled US$310 million.
Despite the decline in assets, Gottex said it posted strong performance in the last three months of last year, which CEO Joachim Gottschalk said should produce strong positive flows in 2010.
“As a result of the positive performance, we have seen increased interest by institutional investors into hedge funds in recent months and we expect to see solid inflows for the industry as the year progresses. Some of the less liquid strategies such as relative value and convertible arbitrage did extremely well in 2009 and the environment remains good for 2010,” he said. “We believe these will attract additional allocations from institutional investors this year.”