The GAM Investments portfolio manager suspended last week did not stray from the firm’s legitimate investment strategies, according to a letter from the company’s CEO to key investors.
Tim Haywood, the company’s investment director, was suspended last week following an internal investigation. GAM released a statement at the time explaining that the issues related to some of his risk management procedures and his record keeping in certain instances.
Haywood oversaw a bond strategy worth £8.5bn
GAM’s chief executive officer, Alex Friedman, wrote in his letter: “We realize that this development has been very unsettling for many of our clients.
“We will continue to do whatever is necessary to ensure our clients can continue to invest with us with confidence… We will be vigilant in considering client detriment on an ongoing basis.
“We now need to focus on internal disciplinary processes to establish if any further actions are necessary.”
Earlier today, the Zurich-based company’s shares rose as much as 4.1% on the news.