Gottex Assets Drop, Firm Plans Cost Cuts

Jan 30 2012 | 1:26pm ET

Despite a strong fourth quarter, the news out of Gottex Fund Management is bleak.

The Swiss fund of hedge funds said that its assets under management dropped, forcing it to cut costs—and pay—this year. Assets dropped about US$1 billion to US$7.34 billion as some larger institutional investors pulled their money to invest in hedge funds directly. Worse still, Gottex doesn't expect investors' appetite for funds of funds to improve for at least six months.

"We expect uncertainty to remain for the remainder of this year, which will impact investor willingness to make allocation decisions," CEO Joachim Gottschalk said.

Gottex's flagship funds lost ground last year, the firm said, but less ground than the average hedge fund. Its credit and multi-strategy hedge funds posted gains, of 3.8% and 3.4%, respectively.


In Depth

bfinance: Fees Falling Across Asset Classes, Yet Overall Investor Costs Still Climbing

May 16 2017 | 9:53pm ET

Despite unprecedented attention on fees, new research from investment consultancy...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Risk-Based Compliance: Why Oversight Of Outsourcing Is Critical

May 10 2017 | 7:02pm ET

Compliance is notoriously one of the trickiest middle office functions for funds...

 

From the current issue of