Arpad Busson has to wield the axe at LumX after several years of losses. The hedge fund playboy now hopes to bounce back with the help of his fintech startup.
LumX, a Swiss asset manager, accumulated losses of a total of $30 million over the past three-and-a-half years. Now, Arpad Busson, the chairman and majority owner, has decided to discontinue the business with collective investment schemes and to hand back the relevant license to Finma, according to a statement released on Monday.
As a consequence, LumX will cut a single-digit number of jobs in Switzerland. The asset manager, which has offices on the Channel Islands, in Luxembourg and Australia, will retain the branch in Nyon and also remain listed on the Swiss exchange.
Turnaround Attempts
The erstwhile hedge fund empire of Busson has dwindled dramatically. The Hungaro-French investor has taken several steps to turn around the fortunes, with job cuts and a merger with Gottex fund firm in 2013.
The company will continue its investments in Lumrisk, a fintech and regtech startup, that turned into the major growth driver at the group.
