Gottex slips into operating loss, sales shrinking

Date: Thursday, September 9, 2010
Author: Lisa Jucca, Reuters

* Gottex had operating loss of $1.1 mln in H1 2010

* AuM fall to $7.3 billion at end H1 * Sees negative impact on full-year revenues

* Wins new business of $560 mln in Q2

ZURICH, Sept 9 (Reuters) - Swiss hedge funds company Gottex (GSMN.S) slipped into an operating loss in the first half of 2010 as persistent scepticism about alternative investments continued to depress revenues.

The company said on Thursday it had slipped into an operating loss of $1.1 million, against a profit of $9.2 million a year earlier.

Founded in 1992, Gottex has seen its managed assets shrink by more than half to $7.3 billion since mid-2008 and it expects the trend to continue. Nearly 90 percent of assets are from institutional investors.

"The uncertainty in global financial markets continues to impact institutional asset flows into the hedge funds industry, with most investors lacking conviction in the current environment," the company said.

"This slowdown in asset raising as well as the delay in return of performance fees naturally will have an impact on net revenues for the year as new initiatives take time to grow."

Although redemptions offset subscriptions in the first six month of the year, Gottex said it had won $560 million of new business in the second quarter, most of which is expected to fund this quarter.

Last year the Gottex platform won its first investment and advisory mandate from food group Nestle (NESN.VX). [ID:nL2570787]

Managed account platforms offer investors a clear picture of their investments and more control over their assets than traditional hedge funds, and are gaining traction among institutions such as pension funds.