25 Mar 2010
Gottex Fund Management Holdings, the Swiss fund of funds group, saw operating profit collapse to $10.1 million as gross revenues halved and assets under management fell by 16% to $8.1 billion at Dec 31.
But the firm said 2010 had begun on better terms: “Our positive start to the year has continued with ongoing outperformance for the core market neutral and portable alpha strategies when compared to hedge fund, equity and bond indices. Over time, continued product outperformance should translate into above average asset flows.”
Gottex noted that the hedge fund market has improved markedly during the last six months with institutional clients and their advisors becoming more active. “In addition, industry consolidation is progressing, partly driven by resource and expertise requirements from institutional investors, who we believe will be the main source of inflows to the hedge fund industry in the next 12 to 18 months. Gottex … should benefit from this trend, both in terms of capturing asset flow as well as the opportunity to absorb and integrate smaller and midsize organisations, which lack scale to attract institutional assets.”
The firm also reported that the risk management solutions business, GSS, launched in June 2009, grew to $500 million in assets from 15 hedge fund clients by the end of February. “The improved governance, control and transparency GSS offers institutional clients has become increasingly important to investors,” Gottex said.
Net client flow across all assets was negative by $600 million or 6% of starting total Assets, with subscriptions for the period of $1.1 billion offset by redemptions of $1.7 billion. In addition, by February 2010 Gottex had returned to investors in its run-off share classes more than 80% of their original holdings in cash.
Market neutral and directional strategies accounted for about 80% of AUM. Around 90% of the firm’s assets come from institutional investors.
Over the first two months of 2010 Gottex said its market neutral and portable alpha products continued to outperform relevant hedge fund, equity and bond indices. This meant that at the end of February the market neutral products were between 5% to 9% away from regaining their high water marks and generating performance fees. The firm added that if March 2010 remains positive, the product will have shown 12 consecutive months of positive returns.
Gottex added that its multi-asset endowment style products generated returns ahead of their benchmark since launch in August 2009. “We are pleased to announce that the integration of the three Constellar fund-of-funds into Gottex has been successfully completed.” The firm is also developing a UCITS III product.
But the firm said 2010 had begun on better terms: “Our positive start to the year has continued with ongoing outperformance for the core market neutral and portable alpha strategies when compared to hedge fund, equity and bond indices. Over time, continued product outperformance should translate into above average asset flows.”
Gottex noted that the hedge fund market has improved markedly during the last six months with institutional clients and their advisors becoming more active. “In addition, industry consolidation is progressing, partly driven by resource and expertise requirements from institutional investors, who we believe will be the main source of inflows to the hedge fund industry in the next 12 to 18 months. Gottex … should benefit from this trend, both in terms of capturing asset flow as well as the opportunity to absorb and integrate smaller and midsize organisations, which lack scale to attract institutional assets.”
The firm also reported that the risk management solutions business, GSS, launched in June 2009, grew to $500 million in assets from 15 hedge fund clients by the end of February. “The improved governance, control and transparency GSS offers institutional clients has become increasingly important to investors,” Gottex said.
Net client flow across all assets was negative by $600 million or 6% of starting total Assets, with subscriptions for the period of $1.1 billion offset by redemptions of $1.7 billion. In addition, by February 2010 Gottex had returned to investors in its run-off share classes more than 80% of their original holdings in cash.
Market neutral and directional strategies accounted for about 80% of AUM. Around 90% of the firm’s assets come from institutional investors.
Over the first two months of 2010 Gottex said its market neutral and portable alpha products continued to outperform relevant hedge fund, equity and bond indices. This meant that at the end of February the market neutral products were between 5% to 9% away from regaining their high water marks and generating performance fees. The firm added that if March 2010 remains positive, the product will have shown 12 consecutive months of positive returns.
Gottex added that its multi-asset endowment style products generated returns ahead of their benchmark since launch in August 2009. “We are pleased to announce that the integration of the three Constellar fund-of-funds into Gottex has been successfully completed.” The firm is also developing a UCITS III product.
