The Swiss bank is kissing off $450 million related to a U.S. hedge fund which is closing. The write-down represents more than Credit Suisse paid for it ten years ago.
Zurich-based Credit Suisse will book $450 million against its fourth-quarter results in asset management from York Capital, it said in a statement on Tuesday. The New York-based hedge fund is almost entirely winding down.
The move comes shortly before the Swiss bank's shareholder meeting to approve the second leg of its dividend from last year, 0.2776 Swiss francs per share in total. Credit Suisse said the write-down will shave seven basis points off its toughest form of capital, but doesn't alter its plans for shareholder payouts this year or next.
York is a vestige of ex-CEO Brady Dougan, who snapped up a minority stake in 2010 for $425 million. Credit Suisse recently embarked on a review of its wider asset management activities.
Winding Down
Managed by billionaire Jamie Dinan, York is one of the longest-running hedge funds in the U.S. but has struggled of late. Dinan told investors he is closing York's European hedge funds, and will manage mainly internal money in a U.S.-based one, according to «The Wall Street Journal» (behind paywall) on Tuesday.
The retreat sparked a move elsewhere: a Zug-based real estate vehicle called Ultima Capital disclosed York as a 7.2 percent stakeholder, it said in a separate statement on Tuesday. York paid an undisclosed premium to cancel a put and call option agreement with Ultima's founders, Byron Baciocchi and Max-Hervé George.
