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...

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