GAM sacked fund star Tim Haywood, whose suspension seven months ago led the Swiss-based asset manager into a downward spiral, for gross misconduct. The bond veteran signaled he will fight the decision.
Zurich-based GAM said on Thursday that it has fired Tim Haywood, who until July co-managed its flagship suite of absolute return funds. GAM had suspended Haywood abruptly for infractions including using his personal email for work.
«Following the conclusion of the investigation and the disciplinary proceedings, the suspended investment director has now been dismissed from the company for gross misconduct,» GAM said in a statement on Thursday, without referring to Haywood by name.
The fund manager indicated to finews.com that he will fight dismissal: «I remain gagged whilst the dismissal decision and disciplinary process remain subject to a potential appeal,» Haywood said.
Fight for Survival
His suspension – sparked by a whistleblower – led to the exit of GAM CEO Alex Friedman and the asset manager in an extraordinarily fragile state as potential acquirers circle. Top regulatory watchdog Natalie Baylis also fled three months into the job, and GAM is fighting to keep its other star fund managers on board as it cuts 20 percent of jobs in response to a slew of withdrawals.
When it warned of the full-year loss for 2018, GAM also flagged a drop in underlying profit this year. The battered asset manager is scotching its dividend, as previously disclosed. Last year, GAM's asset base shriveled by one-third to 56.1 billion Swiss francs ($56 billion) on the year.
