GAM to commit "significant" cash to new hedge fund

 

LONDON (Reuters) - Hedge fund firm GAM said on Wednesday it plans to launch a global long/short fund to invest in stocks it believes will benefit from major structural changes and plans to commit "significant" amounts of money to the fund.

The GAM Eclectic fund, which will also invest in stocks where the firm sees big differences between market value and intrinsic value, will launch in February.

The new fund will be run by Mark Hawtin, who was previously a partner and fund manager at Marshall Wace Asset Management.

"We believe in the manager and his experience," a GAM spokeswoman said.

The launch comes at a time when the $1.7 trillion (£1.14 trillion) hedge fund industry is facing its biggest ever challenge, in the form of highly volatile, disappointing performance and investor outflows.

GAM said it plans to commit "significant" amounts of seed money into the fund.

"It is the best time to launch this product ... It can invest in any sectors going through structural change or a shift in sentiment," the spokeswoman said.

Earlier this month parent Julius Baer (BAER.VX) said net outflows at GAM had accelerated in October.

(Reporting by Laurence Fletcher; Editing by Richard Hubbard)