Gottex Fund Management Holdings has reported positive performance on a YTD basis (to 30 June) for its core market neutral strategies. Despite a slightly slip in fee earning assets, attributed to a range of issues, including FX movements, the fund of hedge funds firm has been awarded $500 million in new mandates allocated between its market neutral products and GSS advisory mandates.

Joachim Gottschalk, Chairman and CEO of Gottex, said that the general volatility in the markets was making institutional investors cautious about their asset allocation decisions, and as a result “asset raising efforts have become more prolonged.”

Gottex has been active on a number of fronts in the first half of the year, including the launch of a Luxembourg fund of UCITS hedge funds and the approval of its onshore multi-asset endowment style products for distribution via US bank platforms in Q4.

“I am convinced that the fund of hedge funds industry will undergo another phase of structural growth but the current uncertainties in world capital markets and economies are having an impact on its timing,” Gottschalk said.

Despite ongoing uncertainty in the global economic picture, Gottex reported that it was continuing to see “pockets of activity” from investors and remains confident of structural growth in the medium term. Interest from private investors remains muted, but it is hoping that good performance coupled with onshore regulated products that boast improved liquidity terms and tax compliance will change this going into 2011.

Total subscriptions for the quarter amounted to $60 million with redemptions of $310 million. Gottex has continued to return capital to redeeming investors through run-off share classes. Investors have on average received nearly 90% of their original holdings in cash as at 30 June.