Gottex Fund Management has announced that it has temporarily suspended redemptions from its commingled Gottex market neutral and directional funds. This has been caused by market illiquidity, credit tightening and adverse foreign currency movements. The firm hopes to remove the suspension of redemptions by April 2009.

Gottex reacted after experiencing a surge of redemptions during the current quarter when assets under management dropped is $13.5 billion compared to $15.6 billion at June 30.

The firmÆs funds û GVA ABL Portfolio and Gottex ABI Fund û have been affected by charges of fraud at US-based Petters Group. The former fund is being unwound and the latter is also subject to a suspension of redemptions. Gottex has clarified that while it did not invest in Petters Group, it invested in independent hedge funds that provided finance to Petters transactions, and furthermore, Gottex is not linked to any FBI investigation.

Gottex has an office in Hong Kong, but employees at that office declined to comment.