Gottex Fund Management’s entire product lone posted positive performance for March year to date, according to the company’s latest trading statement. The results saw Gottex increase its outperformance against its benchmarks.
Total fee-earning assets for the group increased by 3.1% to USD 7.6 billion compared to USD 7.3 billion at 31 December 2011, as a result of positive performance and subscriptions of USD350 million at Gottex Fund Management and LUMA GSS.
Gottex’s flagship market neutral plus product is expected to regain its high water mark in Q2 2012 and would then start accruing performance fees.
The firm has reported a strong balance sheet with no debt and substantial cash reserves of more than USD50 million.
Joachim Gottschalk (pictured), Chairman and CEO, says: “The global financial rally towards the end of 2011 has continued to enhance hedge fund returns. This is an important factor as investors consider repositioning their portfolios to look for yield in 2012 and beyond, which we believe will drive positive growth in asset flows in our industry in the longer term.
“We are getting closer to accruing incentive fees for our flagship market neutral plus product, which will be a major milestone for the company. In addition, several of our other products have accrued incentive fees during the first quarter, although market volatility remains and ongoing strong positive performance is not a given.
“Despite some positive signs of economic recovery and political uncertainty surrounding the European sovereign debt developments, means investors still remain hesitant to make significant asset allocation decisions. However, we are seeing a pick-up in activity in certain areas such as customised solutions, advisory mandates and managed accounts. We expect industry growth to accelerate as investors start looking for higher risk adjusted returns over the relative safe havens of cash and bonds.”