Bank Credit Suisse will record an asset impairment of 450 million dollars (379 million euros) in its accounts on its stake in the American investment firm York Capital Management, it announced Tuesday.
This depreciation will be recorded in the results of the fourth quarter of its international asset management division, said the number two in the Swiss banking sector in a press release.
York Capital Management informed investors “a significant change in strategy“, Detailed the bank. The activities of the American firm in the Asia Pacific region should be split into a new separate investment fund, Credit Suisse specifying that it intends to maintain a stake.
In 2010, the Swiss bank took a stake of around 30% in the alternative fund manager. This depreciation will reduce its hard equity by around 7 basis points, the bank said, but has no impact on these forecasts for its dividends for 2020 and 2021.
According to the Wall Street Journal, the founder of York Capital Management, American billionaire Jamie Dinan, on Monday informed his employees and investors of a big change in strategy. It plans to exit its struggling hedge fund activities to refocus on investments that are performing better. The American firm founded in 1991 intends in particular to separate from its hedge fund activities in Europe, according to the American business daily.