GAM axes hedge fund boss in bond crisis for ‘gross misconduct’

Asset manager GAM attempted to draw a line under its bond fund crisis on Thursday by firing the hedge fund boss at the centre of the row.

The Swiss firm said British-based Tim Haywood, who was suspended in July, had been dismissed for “gross misconduct” due to “serious failure to achieve the standard of skill and care which were to be expected of someone in his position”.

Haywood said on Friday he intended to appeal this decision

Haywood, who ran the giant Absolute Return Bond Fund, was accused of shoddy record-keeping after a whistleblower came forward to complain.

His suspension led to the liquidation of ARBF, an exodus of clients and share price collapse, which culminated in the exit of chief executive Alexander Friedman in November.

Gam chairman Hugh Scott-Barrett said: “2018 marked the most difficult year for GAM since its independence 10 years ago and 2019 will continue to be challenging.”

The bonus pool for executives had been slashed by 60% although it still weighs in at Swfr5.6 million (£4.3 million).

Haywood said in a statement: “I dispute many of the findings, while noting the majority of the allegations have been dropped.

“Meanwhile, I have been made redundant by a process which I also consider to have been run unfairly. This reinforces my belief that my dismissal from GAM was a foregone conclusion, and that I have been unjustly singled out.”