Gottex assets drop in Q3, warns on tough market

Date: Tuesday, October 21, 2008
Author: Reuters

Guernsey-based hedge fund group Gottex Fund Management (GFMN.S: Quote, Profile, Research, Stock Buzz) reported a near 14 percent decline in assets under management and warned the market turmoil caused by the credit crisis will continue to weigh.

"Many of Gottex's products have performed in line with or better than the broader market indices and relevant benchmarks, but the unprecedented turmoil in the financial industry had a negative impact on performance, and has continued into October," the group said on Tuesday.

Assets under management were $13.5 billion at Sept. 30, compared with $15.6 billion at June 30, representing a decrease of 13.6 percent as the "extremely challenging markets" weighed.

"Gottex expects a further short term downward impact on AUM due to deleveraging trends, investor portfolio adjustments resulting from concentration issues and liquidity requirements as well as foreign exchange impacts," the group said.

The group said it was well positioned to grow strongly again once market stability returns.

"The coordinated efforts by governments and central banks around the world should start to allow some respite in the almost unrelenting and extreme volatility," it said. (Reporting by Sven Egenter; Editing by Quentin Bryar)