At Swiss asset manager Bellevue, there's a change at the top which few expected. The long-standing CEO will be succeeded by a manager from Credit Suisse.

The imminent departure of André Rueegg as long-time CEO of Swiss asset manager Bellevue caused a ripple surprise in the local financial industry yesterday.

During his 15 years at Bellevue, the last eight as CEO, Rueegg has been regarded as a sovereign and skilled commander on the bridge, who played a key role in raising the company's profile as a specialized asset manager in the healthcare sector.

Unloading the Bank

He succeeded in successively expanding Bellevue's asset management expertise and its distinctive positioning while selling off the associated bank. Today, Bellevue's healthcare investment expertise is internationally sought after and valued.

The Monday surprise was all the greater that Rueegg will make way for a Credit Suisse manager at the end of the year, as reported by finews.com. There are probably good reasons for an experienced banker to take over as CEO.

Experienced managers from Credit Suisse are currently available for well-known reasons. It's a fact that Bellevue recently lost momentum, which is reflected in its share price, down 16 percent over the past year one year and almost 30 percent lower than 24 months ago.

Between Euphoria and Disillusionment

Admittedly, that's not a problem exclusive to Bellevue. Generally, the healthcare sector shone well into the Covid period, only to collapse in the wake of the interest rate turnaround in spring.

Another example is the Zug-based investment company HBM, which didn't fare any better. Healthcare startups and non-listed companies lost significant value in the wake of this disillusionment which had a particularly severe impact, in turn affecting the portfolios of Bellevue and HBM.

Enormous Pressure

There's little doubt the healthcare sector has enormous value creation and share price potential, underpinned by major global demographic changes and the trend towards greater health and sustainability. However, the trends haven't been supported due to volatile stock markets, putting enormous pressure on executives like Rueegg. 

Diversification efforts initiated early, be it in private equity secondaries, or shares of family- and entrepreneur-managed companies, haven't yet sufficiently compensated for the losses in value in healthcare.

A Change of Scenery

In such an environment, it isn't unreasonable to seek a directional change. Still, after being at the helm for eight years, Rueegg certainly deserves a better sendoff.

Gebhard Giselbrecht is a seasoned asset manager who is tasked with turning things around. But for this to happen, the markets also have to play along which isn't the case at the moment.

«With his extensive and long-standing experience, he will bring in new impulses and set accents to lead Bellevue Group back to its growth path,» Bellevue chairman Veit de Maddalena said Monday.

Bank Culture Versus Startup Vibe

With his Credit Suisse experience, the future CEO is likely to bring some big-bank culture to boutique Bellevue, which may be an advantage for certain growth ambitions. At the same time, the company runs the risk of losing the startup vibe cultivated under Rueegg.

The outgoing CEO was fond of saying, at Bellevue «We eat our own cooking.» What will the new chef cook up?