Hedge fund manager Gottex has returned to operational cash flow profitability in the second half of 2012. However, gross revenues for 2012 has decreased by 18% to US$47.9 million as compared to US$58.6 million in 2011.
Joachim Gottschalk, chairman and chief executive officer of Gottex said, "I am pleased that Gottex returned to cash operational profitability during the second half, with a strong and debt-free balance sheet maintained."
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Gottex Fund Management’s annual results for the year that ended 31 December 2012 show that the overall operational cost substantially reduced (excluding Penjing acquisition-related charges) to US$43.7m from US$48.2m in 2011. This resulted in an operating loss of US$4.1m, and a diluted EPS loss of US$0.28.
Gottex’s flagship market neutral plus product, which has outperformed its index by 14.5% cumulatively over the last four years since the start of the financial crisis, as well as the alternative credit strategy, generated incentive fees during 2012.
The hedge fund manager completed the acquisition of Hong Kong-based Penjing Asset Management in August 2012 and recently announced agreement to acquire a majority in UK-based Frontier Investment Management.
Gottex currently has cash and liquid financial investments of US$34.6 million.
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By GlobalDataGottex has experienced positive product performance during the first two months of 2013, with the majority of its core market neutral, multi-asset, alternative credit, US equity and Asian products up between 2% and 8%.
Gottschalk said, "As can be seen from our recent Frontier announcement, we will continue considering non-organic opportunities while maintaining control of our cost base. The long-term strategy of the company is to become a diversified multi asset manager, with a strong core in hedge fund solutions, consulting and multi-asset investing."
