Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

AA-rated manager caught in GAM fund closures

AA-rated manager caught in GAM fund closures

GAM has closed a clutch of young funds, including one run by its star Europe manager.

Niall Gallagher, rated AA by Citywire, only launched the GAM Star Global Leaders fund in December 2012 but it has already liquidated.

Gallagher’s (pictured) principal vehicle is the £450 million GAM Star Continental European Equity, which has returned 36% over the past three years compared with an average of 24% from its Citywire sector. His new fund was to have invested along similar lines but on a global basis.

GAM has also shut the Local Emerging Bond fund it launched in 2012 for its + rated team of Paul McNamara, Caroline Gorman and Denise Prime. The trio also run the £180 million GAM Star Emerging Market Rates fund, which has returned 5.2% on a three-year view against a 6.7% average from its Citywire category.

Their new fund was to have taken a top-down and thematic approach to investing in local-currency emerging market sovereign and quasi-sovereign debt.

Finally, the GAM Star QFS Global Macro Currency fund has closed too after its manager, QFS, decided to wind up its hedge funds. GAM launched the Ucits version of the fund in August last year.

Between inception in 1993 and the end of 2012, the QFS strategy produced a net annualised return of 10.8% with a correlation of less than 0.1 to both global bonds and global equities. However, it posted consecutive losses of nearly 9% in both 2012 and 2013, the first time it had fallen two years in a row.

At their closure, all three GAM funds contained less than £10 million and a spokesperson for the firm told Wealth Manager that they had been shut due to ‘insufficient assets under management’.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Paul McNamara
Paul McNamara
14/29 in Alternative UCITS - Bond Strategies (Performance over 3 years) Average Total Return: 9.50%
Caroline Gorman
Caroline Gorman
15/29 in Alternative UCITS - Bond Strategies (Performance over 3 years) Average Total Return: 9.50%
Denise Prime
Denise Prime
16/29 in Alternative UCITS - Bond Strategies (Performance over 3 years) Average Total Return: 9.50%
Niall Gallagher
Niall Gallagher
44/81 in Equity - Europe Excluding UK (Performance over 3 years) Average Total Return: 56.72%
Citywire TV
Brewin's Gutteridge: what's behind the second oil crash?

Brewin's Gutteridge: what's behind the second oil crash?

This week Brewin Dolphin's research head talks to Will Riley, co-manager of the Guinness Global Energy fund, about what next for oil.  

Play AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Bullas: what drove my UK small cap outperformance

AA-rated Richard Bullas has quietly been making a name for himself at the helm of the Franklin UK Smaller Companies fund.

Play Sector spotlight: how Harwood's Philbin is playing emerging markets

Sector spotlight: how Harwood's Philbin is playing emerging markets

Emerging markets have been a rollercoaster for investors, but amid the doom there have been have been bright spots, such as India. 

Your Business: Cover Star Club

Profile: CHI's bond supremo on liquidity and bond risk management

Profile: CHI's bond supremo on liquidity and bond risk management

'Some people have been extremely complacent about rate rise risk. Myself, I wish they would just get on with it.'

Wealth Manager on Twitter