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

Royalties: The Alternative Assets of the Music Industry

Jul 8 2016 | 7:01pm ET

Recent market volatility has investors seeking greater insight into alternative...

Lifestyle

Vortic: Making Great American Watches Again

Jul 25 2016 | 6:29pm ET

If you are compelled by stories of entrepreneurial vision & drive, or simply...

Guest Contributor

MPI: Like Stellar Returns? Better Understand the Risks First

Jul 22 2016 | 8:44pm ET

When the press reports extraordinarily strong relative or risk-adjusted returns...