Saturday, 25 March 2017
Last updated 23 hours ago
Sep 10 2010 | 11:44am ET
Swiss fund of hedge funds shop Gottex Fund Management swung to a loss in the first half as assets under management dropped 13%.
Gottex said its operating loss for the first six months of the year was US$1.1 million. The firm posted a profit of US$9.2 million in the first half of last year.
Gottex blamed the loss of both the decline in assets under management and a delay in receiving some incentive fees. Assets dropped to US$6.8 billion from US$7.8 billion thanks to a combination of redemptions, performance losses and run-offs in several strategies, the firm said. Net outflows totaled US$380 million.
Management fees were US$30.3 million during the period. The firm did take in some performance fees in the first half—up from none in the first half of 2009—but not much, just US$200,000.
Despite having and making less money as a firm, as individuals, Gottex employees have and made more. The firm’s total pay from January to June was $21.5 million to 111 staffers, from $20.8 million for 118 in the same period last year.
“Crucial to our success will be retaining and incentivizing the most talented people working for our company,” CEO Joachim Gottschalk explained.