Gottex Fund Management, an alternative asset management group, had positive cash earnings for the six months ended 30 June 2010, but its financial performance was impacted by a reduction in the asset base and a delay in the return of incentive fees.
Gross revenues were USD32.9m for the first half of 2010, compared with USD46.1m for the first half of 2009 and USD36.7m for the second half of 2009.
Gottex made a cash operating profit of USD2.3m, compared with USD13.7m in the first half of 2009.
However, it made an operating loss of USD1.1m, following profits of USD9.2m in first half 2009 and USD1.0m in second half 2009.
The basic EPS was -USD0.06 and the adjusted basic EPS was -USD0.03.
Gottex has positive cash reserves of USD41.2m and a debt-free financial position.
It was awarded over USD500m of new mandates between market neutral products and GSS advisory mandates in Q2 2010.
Joachim Gottschalk, chairman and chief executive officer, says: “The first half of 2010 proved to be a difficult environment in the global capital markets as high volatility combined with a broad based decline in the second quarter. This had a delaying effect on asset raising in our industry as well as the return of incentive fees. On the other hand, we have seen positive developments such as the positive absolute performance and continuing outperformance on a relative basis of our flagship market neutral products, pockets of client activity, the launch of our Ucits product and the slowing of the decline in gross revenues and management fees in the first half of this year versus second half of 2009.
“Gottex remains a cash generative business with substantial reserves. We believe we are taking the appropriate measures to address the short term challenges whilst positioning the company for the next wave of industry growth we expect to develop in the coming years. Crucial to our success will be retaining and incentivising the most talented people working for our company. As a well-resourced large firm with a diversified client base, we expect to be well positioned for the return of growth.”
