Hedge Fund Fermat Gets $1.7 Billion in Inflows After GAM Split

Fermat Capital Management, a hedge fund manager whose main strategy is investing in catastrophe bonds, says it’s seen inflows into two key funds swell to $1.7 billion since early April.

The development follows a falling-out with GAM Holding AG, which announced on April 7 it was severing ties with Fermat. That ended a partnership in which the two had co-managed $3 billion of insurance-linked securities. GAM has instead shifted the collaboration to Swiss Re.

Fermat’s assets under management fell briefly after GAM announced it was moving on. That decline has now been offset by new inflows, leaving ...