Hedge Fund Fermat Blindsided by GAM Decision to End Contract (1)

Fermat Capital Management said on Monday it unexpectedly lost a major contract with asset manager GAM Holding AG to help oversee a portfolio of insurance-linked securities.

The contract, a $3 billion portfolio of ILS, will instead be co-managed by Swiss Re AG starting next month, the Zurich-based reinsurer said in a statement that didn’t mention Fermat.

“Fermat was not informed, consulted, or given any advance notice of this decision by GAM,” John Seo, co-founder and managing director of Fermat, told Bloomberg in an emailed statement.

Colin Bennett, head of marketing and client experience at GAM, confirmed the Swiss Re ...