Gottex Freezes Largest Fund

Nov 13 2008 | 2:34pm ET

Gottex Fund Management Holdings has halted withdrawals from its largest fund of hedge funds after its underlying funds did the same.

The Swiss firm said the redemption suspension would run through April 1, though it could keep the restrictions in place if market conditions don’t improve. Gottex said it made the move after receiving redemption requests totaling 11% of the funds’ assets for the fourth quarter. The fund of funds, which manages some 65% of the firm’s roughly $13 billion in assets, saw its assets shrink by 14% in the third quarter.

The asset freeze was needed “to protect remaining investors and to provide managers time to raise cash and sell positions with the expectation that markets will begin to normalize and liquidity will return,” the firm said. Two Gottex funds that are part of the fund of funds’ portfolio, its flagship market-neutral and directional strategies funds, have also suspended redemptions, leading to liquidity issues for the fund of funds.

Gottex is assuring investors that their patience will be worth it. “We believe this situation has created more attractive opportunities for managers of underlying funds than at any time since our funds launched in 1999,” it said.


In Depth

Q&A: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

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

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.