Alternative asset management group Gottex Fund Management has reported an operational loss of USD2.6m for the six months ended 30 June 2012, in line with its expectations.
It made a more substantial attributable net loss of USD 5.5m after minorities (1H 2011: profit of USD0.4m; 2H 2011: loss of USD 2.9m) primarily due to the company taking a full provision on its main outstanding loan.
Gottex’s flagship market neutral and directional strategies posted positive performance year to date: the portable alpha equity strategies were up 16.5 per cent and alternative credit strategies were up 8.1 per cent.
Gootex also completed its Penjing acquisition on 9 August 2012 and has made a successful start to the approved share buyback programme with 151,000 shares acquired to date.
During the first half period Gottex Fund Management saw new client subscriptions of USD470m resulting in net client inflows of USD170m.
Gottex currently holds USD35m in cash reserves and liquid financial investments.
Joachim Gottschalk, chairman and chief executive officer, says: “As with the previous two years, positive performance over the winter period ran into uncertainty and volatility by the second quarter, which impacted asset-raising and incentive fee generation. More encouraging is the strong relative performance of our main products, and with our core flagship product above its high water mark we anticipate, provided positive performance is maintained, to continue earning incentive fees in the fourth quarter. Also encouraging are the positive client flow during the first half and the acquisition of Hong Kong-based Penjing Asset Management, which establishes Gottex as one of the leading Asian multi-manager solutions providers. The board’s strategy is focused on enhancing the company’s core multi-manager business and developing its strategic initiatives, including its multi-asset business, its hedge fund managed account platform and Asian product line, as well as lowering its cost base.
“Gottex is a stable business with substantial cash reserves and no debt. We expect the risk-on/risk-off environment to remain the main characteristic of the financial markets for the foreseeable future. We believe this is likely to influence performance and growth in the hedge fund industry until stability returns and hedge fund returns materially outperform other asset classes. We remain positive about the longer term outlook, despite political uncertainty surrounding Europe.”