Fund of funds titan Gottex Fund Management, with USD5.1 billion under management, plans to offer structured products to pension funds and other hedge fund management firms. Structured products account for around 5-7% of the firm's revenues and it intends to increase that to 20-40%, according to Max Gottschalk, senior managing director. "We have ambitions to become more than just a fund of funds provider. We want to become a leading alternative investment bank and we believe structured products will be a critical part of the development," he continued.
The firm has hired Steve Oristaglio, head of investments at Putnam Investments in Boston, as ceo of its structured products division. The team has three staffers, including Oristaglio, but Gottschalk expects it to grow to 10-12 by year end.
"More and more of our clients are coming to us, asking us to help with implementing portable alpha strategies," said Gottschalk. The firm will look to provide increased leverage for investors, added Oristaglio. Gottex is discussing opportunities with several pension funds.
At Putnam, Oristaglio was replaced by Kevin Cronin, who was formerly chief operating officer.
