GAM, an asset manager with a large cash outflow, needs to find a new boss. Current CEO Alexander Friedman, who has been under strong criticism, is leaving the company immediately. He and the board agreed Tuesday that the company 's next stage of development should be addressed under new leadership, GAM said Tuesday.
Board member David Jacob assumes the position of CEO. At the same time, a search for a new group boss has begun. GAM emphasizes the need to address the company's next development phase with new leadership.
No temporary CEO candidates
The schedule for finding a new CEO, GAM, was not intentionally given, and a spokesperson was added at the request of AWP. "We want to spend time looking for the best talent." Gam looks internally and externally for Friedman's successor.
However, interim CEO Jacob is not a candidate. Britain has been a board member since April 2017 and has already held management positions with other asset management companies and has extensive industry experience.
Jacob's role is to drive GAM's strategy and ensure that the actions necessary to support profitability are implemented "as soon as possible." More information will be delivered "of course".
Upper fund manager paused
GAM is suffering billions of dollars because investment manager Tim Haywood has been suspended at the end of July after blaming his approach to risk management. As a result, GAM decided to liquidate Haywood's funds.
GAM declined to 166.1 billion francs as of the end of June, compared to 163.8 billion francs at the end of June. In the core business, investment management and asset management decreased by 20% between July and September, resulting in CHF 66.8 billion. At that time, CEO Friedman was promised to implement the "appropriate action of an immediate notice to support profitability". GAM quit in February when the 2018 account was presented.
GAM's share price fell to 5.37 francs at the end of October after being traded above 18 francs in February 2018.
Because of the crisis, GAM is the target of the attacker. According to the Financial Times, Schroder, UK asset manager, is interested in acquiring Systematic business. This was largely unaffected by recent asset spills. GAM refused this request because the sale of individual fillets complicates the sales of the entire company.
Tomasz Grzelak, an analyst with investment firm Baader-Helvea, says GAM is heavily dependent on the market environment over the next few months. "If there is a trend in the financial market, GAM will have time to work on the construction site," Gamel said. Otherwise, the spill is likely to continue, Grzelak said.
Investors should welcome drafts
Changes in the GAM Summit in the stock market will be welcome. GAM shares are trading at 7.3% on Tuesday morning in pre-market trading.
ZKB analyst Michael Kunz recently said: "The top change sends a positive signal, albeit more positive to shareholders than the client." There are many investors who would welcome such a change. "
Tomasz Grzelak of Baader-Helvea recently said that "a new beginning in GAM will help." He censored Friedman's two flaws. First, the UK hedge fund Gantab bought in 2016 was a mistake. Considering the loss of about 60 million francs in this acquisition, bad news started in July and GAM share collapsed since the beginning of the year. Grzelak, meanwhile, criticized Friedman's "unhappy" crisis management, which was honored by Haywood's fund manager at the end of July.
According to an internal charge, according to whistle-blowers, Haywood must violate its own rules, such as documentation and control requirements.
Because of the expensive wages
The GAM Board appreciates Friedman for communicating his achievements. He said he managed a competent business at an unprecedented time of challenge. During his tenure as CEO, he operated an extensive conversion program. And in his decision to suspend the investment director in July, he showed "full support of the board".
Friedman was CEO of GAM in the fall of 2014. But he also continued to criticize the high salary. In 2017, the GAM General Assembly rejected management fees after sharp criticism of hedge funds.
A spokesman for GAM did not want to provide any information about retirement payments to Friedman on Tuesday. He said the compensation report will be released next year. (RM / CFR / ANF / SDA)
Created: 06.11.2018, 07:39 Watches