GAM Sees Biggest Inflows Since Start Of Crisis

Mar 2 2011 | 8:53am ET

For the first time in a long time, Swiss fund of hedge funds firm GAM Holding had what can only be described as a good year.

The Zurich-based firm enjoyed strong growth in profits and its best inflows since the start of the financial crisis, it said yesterday. GAM's underlying profit for 2010 soared 35% to 202.2 million Swiss francs, although for practical purposes that figure was almost wiped out by writedowns and charges.

Still, the firm reported a net inflow of 8 billion Swiss francs, a more than 16-fold increase from 2009 and the best since the beginning of the financial crisis. Most of the new money, 5.9 billion francs worth, went into its GAM division, which houses the firm's hedge funds and funds of funds. Last year was the first time since 2007 that the unit had seen inflows, even though its funds of funds continued to bleed assets.

All told, GAM's assets under management rose 4.2% on the year, both on the inflows and strong performance.

"Market flows indicate that investors are tentatively recovering their interest in equities and hedge funds," CEO Johannes de Gier said. "However, sentiment remains fragile due to persisting macroeconomic uncertainty and it is therefore too early to say whether this encouraging trend will be sustained for the rest of 2011."

Despite its caution, GAM did announce a plan to buy back up to 20% of its outstanding shares over the next three years. The new buyback offer replaces one instituted last year, which saw GAM repurchase about 5% of its shares.


In Depth

Q&A: Open Season For Closed-End Funds

Aug 29 2014 | 10:00am ET

When Maury Fertig and Bob Huffman, former Salomon Brothers coworkers, launched...

Lifestyle

Och Funds Women In Finance Initiative At U-M

Aug 28 2014 | 3:01pm ET

Och-Ziff Capital founder Daniel Och and his wife have made a "generous donation"...

Guest Contributor

Looking Ahead: What’s In Store For Managed Futures?

Aug 22 2014 | 12:52pm ET

The last five years were phenomenal for investors in equity indices. Will the next...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

The time was right

Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.