20. 6. 2019

KGI Releases Open Letter to GAM Board Members

Krupa Global Investments, a significant shareholder of the Swiss asset management company GAM Holding, has sent an open letter to the GAM’s Board of Directors asking to define further strategy and take responsibility for non-standard procedures that have caused a significant decline of the company´s value.

GAM’s shares have fallen significantly since last year due to Tim Haywood, a portfolio manager who was involved in gross misconduct. The fund manager invested large sums in highly illiquid bonds. Therefore, investors have begun to withdraw money from GAM´s bond funds up to the total amount of 30 billion Swiss francs. 

These events had a huge negative impact on the GAM´s value and KGI has justified doubts about the current situation in the company GAM and its further development. We demand that GAM shall clearly define its further strategy, eliminate disadvantageous investments, and prevent further capital outflows from the company. We also demand that Tim Haywood shall take responsibility for his actions.

Krupa Global Investments has built its position in GAM between the first and the second quarter of 2019. The goal of KGI in this project is to act as the activist investor in order to make the company more valuable. We call on other GAM´s shareholders to promote our strategy and initiate a common approach. One of GAM’s major shareholders is George Soros, whose intention is to promote our strategy not only in the GAM company but he is also willing to support other projects related to KGI investments in Europe and in the Czech Republic, as Soros approach highly correlates with KGI strategy.

The GAM Holding manages more than 130 billion CHF, equivalent to 3 trillion CZK. KGI is trying to get access to Swiss capital market and engage with Swiss investors via investments in the company GAM.