GAM Plans to Close Flagship Fund to Investment and

NEW YORK (HedgeWorld.com)--Global Asset Management expects to close to new investment its GAM Diversity fund of funds, which has been growing fast, and to start a similar pool that may allocate primarily to new managers who are not in the original portfolio.

GAM Diversity, in operation since December 1989, has more than US$2.7 billion in assets. Many of its underlying funds are closed to new investment. The firm estimates that this vehicle could take another US$500 million but not more than that.

A pound-class share of Diversity was listed at ?529 (US$831) as of Aug. 26. It also has U.S. dollar and euro class shares. In addition, GAM runs Diversity II and Diversity II Strategic funds of funds. The new addition to the series will be Diversity III, which has not started up yet.

Its launch date could not be determined but is expected to be in a few months, depending on when the original fund closes. The replacement is to be domiciled offshore and to have U.S. dollar, pound and euro class shares.

UBS AG acquired GAM in 1999. The asset manager offers a variety of hedge products, including Asian Hedge, Gabelli Long/Short, European Hedge and Japan Hedge funds.

CKurdas@HedgeWorld.com

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