Another High-Level Exit, and Job Cuts, At Scandal-Rocked GAM Holding

No respite for GAM Holding as it weighs a 40% cut in its workforce and the departure of its Head of Investments.

GAM Holding announced Monday the departure of Matthew Beesley, group head of investments, with effect from the second quarter of 2020.

According to a company spokesman, Mr. Beesley is leaving to pursue career opportunities outside the firm. His responsibilities will be split between Steve Rafferty, group chief operating officer, Anthony Lawler, head of systematic and solutions, and another head to be hired soon.

GAM Holding fell victim to massive client withdrawals and a 75% fall in its market value following a 2018 scandal. The company sacked former star manager Tim Hayward for allegedly improper investment practices and breaches of company rules.

Further, in November 2018, CEO Alexander S Friedman departed GAM Holding and was replaced by interim CEO David Jacob.

Effective September 1, Peter Sanderson assumed the position of group CEO. Mr. Sanderson had been head of financial services consulting in EMEA, co-head of multi-asset investment solutions in EMEA, and chief operating officer for BlackRock Solutions.

Job cuts to restore profitability

Unfortunately, the current announcement of the departure of Mr. Beesley follows on the heels of a Bloomberg report on job cuts.

Bloomberg said GAM holding AG was considering cuts of over 40% of its workforce. It attributed the action to chief executive officer Peter Sanderson as an attempt to restore profitability.

Meanwhile, in May 2019, legendary investor George Soros acquired a stake in GAM.

In July 2019, GAM Holding completed the liquidation of all of Mr. Haywood’s funds, including the unconstrained/absolute return bond funds (ARBF), resulting in 100.5% of portfolio value to investors.

Assets under management at GAM Holding are currently 135.7 billion Swiss francs ($136.6 billion).

[Related Story: Blackrock Aims to Cut Fees and Risk in Private Equity Investing   ]

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