Gottex Posts Loss As Assets, Performance Decline

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.


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note