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GAM shares plummet following suspension of absolute return head

GAM shares plummet following suspension of absolute return head

GAM's shares price has continued to fall, hitting CHF 8.54 on 3 August, after the company announced that it had frozen its 7.3 billion flagship funds on Thursday.  

On Tuesday, the company's share price dropped by 18.6% after the asset manager Tim Haywood, head of GAM's unconstrained/absolute return bond strategy.

The stock opened at CHF 11.30 on the morning of 31 July and had fallen to CHF 9.17 by the late afternoon.

Overall, the firm's shares have been declining since mid-January 2018, after peaking at CHF 17.81. 

In a statement, GAM said that Haywood's suspension came as a result of an internal investigation related to his risk management procedures and record keeping practices. 

The investigation has not revealed any harm done to clients, although this remains under review.

GAM emphasised Haywood's integrity, noting that the investigation has not raised any concerns about his honesty.

The CHF 11 billion unconstrained/absolute return bond strategy will now be managed by Jack Flaherty and Alex McKnight.

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