GAM Hemorrhages $3 Billion Since July Suspension of Top Manager

  • Outflows rise, stock slides and short sellers are circling
  • Sources say bankers are identifying possible buyers for GAM
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The damage control effort at GAM Holding AG hasn’t helped the asset manager turn a corner yet.

Since the Swiss investment firm suspended one of its biggest money managers six weeks ago over allegations of misconduct and froze more than $7 billion of his funds, clients have pulled $3 billion from unrelated portfolios and its shares have plunged 41 percent.