U.S. Markets open in 4 hrs 47 mins

GAM's Haywood Probe Is Said to Review Deals With Industrialist

Luca Casiraghi, Tom Beardsworth
GAM's Haywood Probe Is Said to Review Deals With Industrialist

Recent troubles for GAM Holding AG and one of its leading fund managers can be traced to a series of investments tied to a British industrialist, according to people familiar with the matter. Tim Haywood’s suspension six weeks ago -- which GAM said it decided upon after reviewing alleged violations of internal procedures -- partly relates to investments made in unlisted securities linked to companies controlled by Sanjeev Gupta, said the people, who asked not to be identified because an internal investigation at GAM is ongoing. Allegations that Haywood conducted insufficient due diligence on these investments were a key issue that prompted the fund manager’s suspension in July, the people said.