GAM knocks back Schroders' attempt to buy hedge fund unit - reports

Acquisition could hurt overall sale potential

clock • 2 min read

Embattled Swiss asset manager GAM has declined an approach from Schroders to acquire its Systematic division that is home to the Cantab quantitative hedge fund.

According to the Financal Times, Schroders approached the Swiss asset manager with an interest in its hedge fund business, but the firm rebuffed the purchase attempt due to concerns that selling one of its key assets would render an overall sale more difficult. The firm's share price has fallen by more than two-thirds over the course of 2018, with its overall value shrinking to SFr966m ($963m). The fall is rooted in the firm's July warning that Cantab, which it bought in 2016 for an initial $217m cash payment, would see its first-half profits hit by SFr59m in write-offs. This was s...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

David Coombs: How to stop the exodus to Uncle Sam

David Coombs: How to stop the exodus to Uncle Sam

What's needed to stem the flow of UK companies rushing to list abroad?

David Coombs
clock 16 May 2024 • 3 min read
Infrastructure spend could help push growth despite bleak outlook

Infrastructure spend could help push growth despite bleak outlook

'One of the things that will drive the background music is inflation'

Hope Coumbe
clock 15 May 2024 • 1 min read
Future of Investment Festival: Three weeks left to secure a spot!

Future of Investment Festival: Three weeks left to secure a spot!

Targeted at sustainable, forward-thinking finance professionals

Professional Adviser
clock 15 May 2024 • 1 min read