Global alternative asset management group Gottex Fund Management Holdings Limited (Gottex) returned to operating profitability in 2011, according to the group’s annual results for the year ended 31 December.
Financial performance was in-line with current expectations with gross revenues of USD 58.6 million (2010: USD 63.8 million) and substantially reduced overall operational cost of USD 48.2 million (2010: USD 58.1 million) resulted in an operating profit of USD 0.7 million (2010: USD 5.0 million loss). Diluted EPS losses of USD -0.09 (2010: USD -0.10) were generated due to the impact of financial investments and certain impairment charges.
Gottex continued Continued positive product performance during the first two months of 2012 with our core market neutral, multi-asset, alternative credit and Constellar multi-strategy products up between 2% to 3%.
Gottex’s flagship market neutral plus product as well as the alternative credit strategy are nearing their high water marks at the end of February 2012 and are close to accruing performance fees during Q2 2012.
Joachim Gottschalk (pictured), Chairman and Chief Executive Officer, says: “In a challenging year, which included extraordinary volatility and uncertainty in financial markets resulting in a major correction during the third quarter, our products showed resilience and strong performance. This has continued during the beginning of 2012, which should provide a solid base to build on for the current year. However, client flows remain slow in the current risk on/risk off environment, even though we see areas with secular growth, like our dynamic multi-asset allocation products, managed accounts and the Asian region.
“I am pleased that Gottex has returned to operational profitability during the year, within what most considered a demanding environment. Going forward, we will focus on our core business and concentrate on our three diversification initiatives, namely the Multi Asset Endowment, LUMA-GSS and the Asian businesses. Gottex remains a cash generative business with a strong and debt-free balance sheet. At the same time, we will consider non-organic opportunities and maintain control of our cost base. We believe that the ‘search for yield’ by investors will continue to build and start driving asset flows to an alternative investment sector that is performing well. We are confident about the medium term outlook of the company.”