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GAM Slumps as Top Bond Manager Haywood Suspended Amid Probe

Ross Larsen, Julie Edde, Patrick Winters
GAM Slumps as Top Bond Manager Haywood Suspended Amid Probe

GAM Holding AG slumped the most in nine years after the Swiss investment firm suspended the manager of its flagship bond fund and warned that the disciplinary action, together with volatile market conditions, may lead to outflows. GAM took action against Tim Haywood, who heads the 11 billion franc ($11.1 billion) absolute return bond strategy, after an investigation revealed issues with his risk management procedures and record keeping. It’s the latest blow to Chief Executive Officer Alex Friedman after the firm earlier this month issued a profit warning following an impairment charge at its Cantab quant fund unit.