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GAM's Problems Go Way Beyond Its Ousted Manager

Mark Gilbert
GAM's Problems Go Way Beyond Its Ousted Manager

It’s been a terrible couple of weeks for GAM Holding AG. Earlier this month, GAM said it was writing off $59 million of goodwill from its acquisition of hedge fund Cantab Capital Partners, for which it paid $217 million in October 2017. On Tuesday, it announced the suspension of Tim Haywood, the portfolio manager of its flagship absolute return bond fund after investigating “some of his risk management procedures and his record-keeping.” Clients are likely to withdraw money as a result, GAM said.