Shares in Swiss asset management firm Gam plummeted more than ten per cent this morning after Credit Suisse halved its price target for the stock.
Gam Holdings' shares were down 10.4 per cent to SFr7.32 (£5.80) at midday after the banking giant cut its target from SFr14.20 to SFr7.
The troubled company announced the start of a liquidation process for unconstrained/absolute return bonds on Tuesday following the suspension of investment director Tim Haywood last month.
All fund investors will receive their proportionate interest in cash from the liquidation process, with the first payments expected early next month, the firm said.
Haywood was suspended from the company over risk management proceedings and record keeping following an internal investigation, which raised no concerns over his honesty.
Gam chief executive officer Alexander Friedman said yesterday: “The suspension and the subsequent decision to liquidate the ARBF funds has been a difficult process, but necessary to ensure that we deliver on our principles of acting in the best interests of all fund investors and treating them equally and fairly.
"This does not take away from the fundamental strength of Gam as a diversified asset manager."
Gam, which is headquartered in Zurich, manages around SFr163.8bn, and employs more than 900 people in 14 countries. It offers investment management alongside private labelling services.