GAM CEO Struggles to Stabilize Firm After $18 Billion Outflows
- Assets in main investment unit down more than 20% since June
- Company to take ‘immediate’ measures to safeguard profit
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GAM Holding AG investors aren’t buying Chief Executive Officer Alex Friedman’s promise to stabilize the troubled Swiss asset manager after outflows accelerated and the firm said it may take months to give an update on its strategic priorities.
The Zurich-based firm’s assets tumbled by a fifth in its main investment management business as star manager Tim Haywood’s suspension sent investors fleeing. GAM shares declined as much 22 percent, the most in more than nine years, and traded almost 17 percent lower at 2:34 p.m. local time.