Gottex Fund Management Holdings, part of the international fund of hedge funds management group, has reported in its pre-close trading statement for 2008 that assets under management fe
Gottex Fund Management Holdings, part of the international fund of hedge funds management group, has reported in its pre-close trading statement for 2008 that assets under management fell from USD13.5bn at the end of September to USD9.6bn at year-end.
This represents a decline of 27.8 per cent that it attributes primarily to foreign exchange and rebalancing factors as well as negative performance.
Gottex has also proposed the reopening of its market neutral and directional funds as of March, a new incentive fee structure with claw-back features, and an approved share purchase programme. The statement notes that Gottex still has a strong balance sheet with no debt and substantial cash reserves.
‘The deepening of the financial crisis during the last quarter of 2008, driven by deleveraging, liquidity issues and asset liquidation, presented multiple challenges to the whole of the financial industry, including Gottex,’ says chairman and chief executive Joachim Gottschalk. ‘The key to future success will be to address the main issues confronting the hedge fund universe and pro-actively apply the necessary changes.
‘The Gottex team is committed and motivated and has clear plans to address the current challenges to allow us to benefit from the substantial alpha opportunity ahead. Our plans include the reopening and restructuring of our funds, competitive pricing, remaining focused on our core business and introducing a long term incentive fee structure aligning the interests of us and our clients.
‘In the short term the company is focused on implementing its proposed plans to address the key issues identified and undertake the measures required to be successful in the ‘new financial world’. The company’s strong balance sheet with high cash reserves and no debt, its global coverage and its predominantly institutional client base constitute a solid base to face the expected consolidation and convergence in the hedge fund industry.’