Gottex Fund Management's flagship market neutral strategies are well ahead of their benchmarks as of the end of Q3 2011, according to the company's latest trading statement. And Gottex's alternative credit strategy outperformed its index by over 6%.
Total fee earning assets for the group stood at USD 8.2 billion, a decrease of 7.9% compared to USD 8.9 billion at 30 June 2011, primarily as a result of extensive volatility in global financial markets during the period.
Gottex Solutions Services (GSS) assets are up 24% year-to-date, while the company has also started an extensive US marketing road show for the Multi Asset Endowment Fund, supported by growing interest for multi-asset balanced mandates.
Joachim Gottschalk (pictured), Chairman and CEO, says: “The third quarter of 2011 turned out to be a very challenging environment across all financial markets, which has substantially reduced returns for all equity investors. Hedge funds have suffered as well, but by far less, with returns generally being just below zero for the year to date, therefore providing downside protection.
"Against this backdrop, we are pleased that our flagship market neutral strategies have shown a strong relative performance and have outperformed their main benchmarks by 2.5% to 3.5%1. However, as to be expected, the general volatility has affected investor sentiment and slowed down asset flows. Although we believe that European politicians are ready to take the urgent intermediary steps to address the Euro crisis, it will take some time for this to work through and the related uncertainty and volatility to diminish.
“On a more positive note, we have detected a growing need among institutional investors to generate positive returns without excessive volatility and they are consequently increasingly looking at alternatives, as their bond portfolios are suffering from negative real yields and equity portfolios are subject to considerable swings. In that light, I am particularly pleased with the positive performance during the year to date of our alternative credit strategy and our Constellar diversified portfolios. Similarly, we have seen growing interest in multi-asset balanced mandates during our marketing road show of our US registered Multi-Asset Endowment Fund.”