Mark Hawtin

Hawtin – who spent 15 years with the business – will leave his role as head of global growth equity, along with his team, in May. The team – made up of David Goodman, Kevin Kruczynski and Pieran Maru currently manage the GAM Star Disruptive Growth and GAM Star Alpha Technology funds.

Roberts is set to join Liontrust earlier, in April, having most recently served as global head of distribution at GAM. In his new role he will be responsible for growing global distribution outside the UK specifically, focused on: Germany, Switzerland, Italy, the Nordics, Iberia and Latin America, Benelux and France. Prior to GAM, Roberts was co-head of EMEA retail sales and head of UK retail business at BlackRock.

Speaking in an announcement, Liontrust asserted that the appointments will “enable Liontrust to expand its fund offering, international distribution and client base”.

“Mark Hawtin and his team are an important addition to Liontrust given the importance of global equities across the client base. Mark has a strong track record in managing long only and long/short equity funds at Marshall Wace and then GAM and further enhances our global capabilities,” said John Ions, chief executive of Liontrust.

He added: “Jeremy has successfully built global distribution and will be responsible for expanding our client relationships and partnerships in continental Europe and South America.”

The move follows last year’s conditional agreement between the two firms, which saw Liontrust conditionally agree to acquire its Swiss competitor GAM Holding for £96 million back in May, following murmurs of the deal in April. 

The deal, once completed, was set to create a global asset manager with £53 billion in assets under management and administration. However, the board of GAM Holding subsequently declared Liontrust Asset Management’s offer for the business unsuccessful and in August, an agreement was instead made with Rock Investment SAS and Newgame to finance the business’ liquidity needs.

Read more: GAM shares turnaround plan to return to profitability

Following Hawtin’s departure, Newton Investment Management Group’s Paul Markham is set to take over as head of global growth equities at GAM from next month, with Hawtin remaining for the time being to ensure a smooth handover. 

Speaking to his appointment, Paul Markham enthused: “This is an exciting time to join GAM’s highly regarded global growth and disruptive equities team. I share GAM’s belief in building concentrated long-only portfolios with high active share and diversified risk in order to deliver long-term outperformance for clients.

“I am looking forward to working with the team to deepen and expand the firm’s expertise across the considerable market opportunity set in global equities.”

Markham is set to join as an investment director and leaves Newton after more than 25 years. He will report to Elmar Zumbuehl, chief executive of GAM and lead a team of five, The TRADE understands.

He was most recently head of global equities at Newton, playing a key role in the growth of the firm’s global equity franchise and overseeing assets of around £7 billion.

Since October, GAM has seen a swathe of appointments in a bid to grow the business and increase profits following last year’s acquisition saga. 

Speaking to Markham’s appointment, Zumbuehl , said: “I am delighted to welcome Paul to GAM, his experience and track record will help us grow our global equity franchise as part of our strategy which is focused on creating long-term value for all our clients, shareholders, and employees.

“I would also like to thank Mark for his contribution to GAM over many years and I am pleased that he will remain with the firm for the next few months to ensure a smooth handover to Paul.”

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The immediate focus for the business is set to be investing in client service and portfolio management, specifically hiring in senior sales and distribution team members focused on Europe and the UK, as well as investment managers for both the luxury brands and credit opportunities strategies.

GAM has already made several new appointments in recent weeks in a bid to grow the business and increase profits, including changes to the group management board. 

Speaking to the recent work, Elmar Zumbuehl, chief executive of GAM, said: “I am delighted to have been able to strengthen the Group Management Board with these appointments and together we will lead the turnaround of GAM […] The continuing strong investment performance and the support from our anchor shareholder Rock means that we can move forward with confidence and with a focus on growth and returning GAM to profitability.”

UK asset manager Liontrust conditionally agreed to acquire its Swiss competitor GAM Holding for £96 million back in May, following murmurs of the deal in April, however the board of GAM Holding subsequently declared Liontrust Asset Management’s offer for the business unsuccessful in August, and an agreement was instead made with Rock Investment SAS and Newgame to finance the business’ liquidity needs. 

Read more – GAM acquisition saga continues as Rock Investments proposes new alternative to Liontrust deal

GAM has confirmed that the financing agreement with Rock which provides CHF 100 million in funding has been completed. The loan term will run until June 2025, with an option to extend by another year.

Rock, in conjunction with the other Newgame investors, will control around 30% of GAM shares once their tender offer has completed, the businesses confirmed.

Anthony Maarek, managing director of NJJ Holding – of which Rock is a subsidiary, said: “GAM is an important long-term strategic investment for NJJ, and we are committed with management to restoring the company to a best-in-class global asset management firm. We view it as the first step in developing an investment pillar in financial services as part of NJJ’s long term strategy.”

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NJJ Holding-owned Rock is part of an investor group, also consisting of companies Newgame and Bruellan, which controls 9.6% of GAM Holding.

The agreement specifically relates to an extension of the previously proposed immediate short-term financing of CHF 20 million in order to cover GAM, which would remain until replaced by the CHF 25 million convertible bond proposed by Rock Investments last week.

Initially, the financing option was declared lacking by GAM in a statement made on Monday 21 August, which claimed the amount represented around a quarter of the necessary input.

However, the business will now move to finalise the proposed financing with GAM shareholders at an extraordinary general meeting held on or around 27 September.

The outcome follows significant back and forth around the Liontrust and GAM deal over the last three months – which saw significant mudslinging between the Newgame group and GAM.

UK asset manager Liontrust conditionally agreed to acquire its Swiss competitor GAM Holding for £96 million back in May, following murmurs of the deal in April.

Speaking at the time the offer was announced, John Ions, chief executive of Liontrust, said: “We have made a good and fair offer for GAM and believe it is in the best interests of the shareholders of both companies, as well as clients and employees, by providing a great platform for growth along with corporate and financial stability for GAM.”

Supporting this, David Jacob, chair of GAM, at the time expressed the board’s recommendation that it be accepted by all shareholders. However, there was immediate backlash from some stakeholders.

Following the announcement of the proposed takeover in May, the Newgame and Bruellan investor group stated that it was considering rejecting the offer and believed there were better options which could turn the business around. 

At the time, the investor group stated that it believed the offer undervalued the GAM business, highlighting the fact that it was not a cash offer as a key drawback: “The fact that Liontrust only offers its own shares […] implies that GAM shareholders will be subject to the volatility of Liontrust shares without any firm price for a business that has significant intrinsic value.”

In addition, the group expressed concern related to the execution contingencies of the proposed deal – “the risk of an unsuccessful exit of GAM’s fund management services business in Luxembourg and Switzerland (on which almost no information is being provided) is being shifted to GAM shareholders,” said the investor group.

In recent months, the group has made various statements aimed at preventing the Liontrust takeover and has previously filed two official objections to the Swiss Takeover Board (TOB) concerning the Liontrust offer in the last two months.

In addition, the group also considered a partial public offer to purchase “up to” 28 million GAM shares – equating to around 17.5% of the issued share capital of GAM for CHF0.55 per share in a bid to halt the offer.

This latest development following the rejection of the Liontrust offer, will also see the current GAM board stand down at the upcoming EGM, with new directors proposed by Rock.

The investor group has confirmed to the current board “their intention to secure sufficient financial resources to fund GAM’s operations as a going concern”. In response to this, the board has stated a recommendation to shareholders to approve the proposed candidates.

Speaking to this latest development, Jacob, said: “I am pleased that we have successfully concluded our discussions with NewGAMe and entered into financing arrangements. This provides a clear path forward for GAM and stability for our clients, employees and all other shareholders. I would like to thank clients, employees and shareholders for their patience during the process of securing a strategic outcome for GAM.”

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Rock Investments has proposed a short-term bridge financing in the form of a CHF25 million convertible bond, to be used in the event that Liontrust’s offer for GAM Holding is not accepted.
 
The short-term bridge financing from Rock is planned to be presented at a future EGM and would reportedly replace their previously proposed bridge financing.

However, the financing option has been declared lacking by GAM in a statement made on Monday 21 August, which made clear that this amount represents around a quarter of the necessary input.

In response to the communication sent by Rock to the GAM board on 17 August, GAM has stated that “the proposed convertible bond is insufficient to maintain GAM”, explaining that a capital injection for the immediate foreseeable future would need to be in excess of CHF 100 million.

“Against this background, the proposed convertible bond is insufficient to maintain GAM […] in the short term let alone over the next 12 months as required by law and regulators,” said the business.

UK asset manager Liontrust conditionally agreed to acquire its Swiss competitor GAM Holding for £96 million in May, following murmurs of the deal in April.

If the transaction is successful, the new global asset management entity would hold £53 billion in assets under management (AUM) and administration, expanding Liontrust’s product range into fixed income, thematic equities and alternatives, as well as its overall presence across Europe. 

Following announcement of the proposed takeover, an investor group, made up of companies Newgame – controlled by Rock Investment – and Bruellan, which together control 9.6% of GAM Holding, stated that it was contemplating rejecting the offer.

The group has continually expressed that it believes the offer from Liontrust fundamentally undervalues the GAM business. It has previously filed two official objections to the Swiss Takeover Board (TOB) concerning the Liontrust offer thus far.

The most recent announcement from GAM on Monday reiterates the board’s preference for the Liontrust takeover. 

Speaking to shareholders earlier this month, David Jacob, chair of GAM, said: “I acknowledge that this has been a challenging journey for shareholders. However, at this critical point, I urge you to tender your shares into the Liontrust Offer. By doing this, you protect your investment and have the opportunity to participate in the future value creation from the enlarged firm.”

In a statement this week, GAM once again asserted that the Liontrust offer is the only viable option and in the interests of all stakeholders.

“Liontrust have done extensive due diligence and the enlarged business will have a strong balance sheet, a broader array of excellent investment products, a global distribution footprint and the capability to deliver synergies and growth.”

The newest deadline for shareholders to tender their shares into the Liontrust offer is 23 August 2023.

In the same communication, GAM also addressed Rock directly, urging the business to accept the realities of GAM’s financial position: “If the Liontrust offer is declared unsuccessful it is essential that Rock acknowledge and accept publicly that the level of funding needed to stabilise GAM is significantly higher than the net proceeds of the Rock proposed convertible bond.

“[…] failing to do so is not reflective of GAM’s actual financial position and business performance and is misleading to GAM and its shareholders.”

The Newgame and Bruellan investor group and Liontrust Asset Managament both declined to comment when approached by The TRADE.

GAM Holdings did not immediately respond to a request for comment.

The post GAM acquisition saga continues as Rock Investments proposes new alternative to Liontrust deal appeared first on The TRADE.

GAM confirmed that Rafferty joined the firm on 4 November after 16 years with BlackRock, where he oversaw the operations of $2 trillion in fixed income assets, before departing in May this year. He reports to recently appointed group chief executive, Peter Sanderson.

“Reducing complexity, as well as strengthening our core business and improving profitability, are fundamental to the future of GAM,” Sanderson commented. “Steve has a demonstrable track record in designing and implementing improvements across a global business and his appointment will further support us in achieving our objectives.”

As COO, GAM added that Rafferty will be responsible for leading the asset managers day-to-day global business, ensuring it has connectivity, coordination and processes in place to meet its goals.

In July, GAM confirmed the appointment of Sanderson as its new group CEO and he took on the role on 1 September. Similar to Rafferty, Sanderson is a BlackRock veteran having first joined the asset manager in 2006, and most recently overseeing its financial services consulting in Europe.

More recently, GAM was forced to issue a statement denying claims from the media that it was in discussions to be acquired by Generali. GAM has had a difficult year after moving to liquidate funds managed by Tim Haywood, who was sacked for gross misconduct in February. The move saw shares in the asset manager plummet, with former CEO Alexander Friedman later opting to step down from his leadership position, to be replaced by Sanderson. 

The post Former BlackRock fixed income operating chief named COO of GAM appeared first on The TRADE.

Sanderson, who will take up the role on 1 September subject to regulatory approval, will replace current interim CEO David Jacob, who has been appointed as the Group’s new chairman effective 1 October.

He will be responsible for “further simplifying the business and concentrating on areas of recognised expertise where GAM has competitive edge in order to put the business back on a growth trajectory,” according to the firm.

Having joined BlackRock in 2006, Sanderson was most recently the buy-side giant’s head of financial services consulting in EMEA, a role he first took on in 2012, and held prior positions including co-head of multi-asset investment solutions and chief operating officer for BlackRock Solutions in EMEA. Before joining BlackRock, Sanderson also had roles with Mondrian Investment Partners and KPMG.

“I am thrilled to be joining GAM and look forward to leading the business through its stabilisation and into renewed growth,” commented Sanderson on his new role.

“With its specialist and distinct product offering, and the true independence of its investment managers, GAM is in a unique position in the asset management industry. I look forward to working with the talented and dedicated staff at GAM to continue delivering the products, services and returns our clients expect from us.”

The post Swiss asset manager taps BlackRock managing director as new chief executive appeared first on The TRADE.

Andrew Wynd, trader/analyst, Kuvari Partners

Andrew Wynd began his career at Bank of America Merrill Lynch in 2012 within the organisation’s Investment Banking division, after graduating Durham University with a first-class degree in Economics. In 2014 he moved to alternatives specialist MSK Capital Partners, where he was an analyst and trader, before joining the newly-launched hedge fund Kuvari Partners in December 2016, where he operates as both the sole trader for the firm and as an analyst.

Michael Johns, dealer, Troy Asset Management

Following the completion of an Economics degree and a Master’s degree in Financial Markets, Michael Johns has worked on the buy-side in London since 2009. He started his career at AIS Europe Limited (acquired by US Bancorp), before moving to hedge fund RAB Capital in 2010. Since 2013, he has been part of the multi-asset trading team at Troy Asset Management, where he has traded equities, fixed income and FX. During his time at Troy, Michael has also been involved in various projects related to the build out and integration of the firm’s trading technology and infrastructure.

Xavier Leopold, multi-asset trader, State Street Global Advisors

Xavier Leopold’s career in finance began when he joined Bloomberg’s Sales & Analytics 2010 summer internship program at the age of 18. He later joined proprietary trading firm Zone Investments in 2012 as a trainee trader on the derivatives desk, and in February 2013 joined ConvergEx Group (now Cowen Group) as a junior trader, initially covering APAC equities before transitioning into EMEA equities. Following that, Xavier moved into the prime brokerage space at Linear Investments in 2016, before joining SSGA in October 2017, covering equities, forwards, FX swaps in G10/EM, rates and commodity derivatives.

Alexandra Tidy, head of EMEA equity trading, analytics and strategy, JP Morgan Asset Management

Alexandra Tidy spent four years working within the trading analytics team at JP Morgan Asset Management before becoming head of EMEA equity trading analytics and strategy. She is responsible for trading strategy and design of systematic execution rules across equity-linked products. Alexandra obtained a BSc (Hons) in MORSE from University of Warwick, was included in Brummell Magazine’s Ones to Watch 2018, and is a keen attendee at many women in finance events, including Women in Listed Derivatives (WILD) in London.

Joe Moloney, assistant investment manager and trader, rates and FX, GAM

Joe Moloney is currently an assistant investment manager & trader at GAM, based in their London office, active in derivatives, fixed income, foreign exchange and trade finance. He began his career in 2010 at GAM’s Dublin office, before moving to GAM London in 2013 and taking up his current role in 2015. In January 2019, Moloney will be joining Moore Europe Capital Management as a fixed income execution trader. 

This year’s Rising Stars of Trading and Execution will be awarded during the Plato Debate – Key Market Trends and Challenges in 2018 and Beyond event.

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