GAM's bond fund distress leaves asset manager weighing its future
Zurich — GAM Holding CEO Alex Friedman must be hoping bad luck comes in threes. His asset manager has been battered by the suspension of a top bond manager, which prompted clients to pull their money; a writedown on a quant fund he purchased two years ago; and market volatility that may lead customers to look elsewhere for their cash. The shares have lost a third of their value in the past month and the Swiss investment manager froze redemptions from some of the funds on Thursday after too many clients tried to pull out. Chairman Hugh Scott-Barrett sought to soothe investor fears, saying he is open to all ways of strengthening the stock price. The fund freeze "brings GAM out of the frying pan and into the fire", Michael Kunz, an analyst at Zuercher Kantonalbank, wrote in a note to clients.
GAM fell 12% at 3.38pm in Zurich trading, bringing losses in the past month to 34%. The firm oversaw about Sf164bn ($165bn) for clients as of June 30. "The board of directors and the manage...
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