Grupo BTG Pactual cut bonus payouts to some traders at its hedge fund unit by as much as 80% following a slump in assets under management, according to a person familiar with the matter.
Bloomberg News reports that some of the bonus payment will be made in February, employees in Europe were told Friday, said the person, asking not to be identified because the matter is private. The scale of bonus cuts was based on the performance of individual traders, a spokesman for the bank said, declining to comment further.
The BTG Pactual GEMM Fund, which bets across asset classes based on economic trends, has seen assets drop to about $250m, the person said, from more than $4bn in November as investors redeemed money following the arrest and release of BTG Pactual’s billionaire founder Andre Esteves. BTG Pactual, which had hundreds of millions of dollars invested in the fund, was among investors that pulled money out, two people said.
'Arguably, this has been a text book example of a very well-managed fund dealing with extraordinary circumstances and being able to meet its liabilities in an orderly manner', BTG Pactual said in an e-mailed statement. 'There are very few examples of other funds that have been able to do the same thing'.
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