Shares in GAM have taken another beating after it was forced to suspend dealing on its unconstrained absolute return bond funds.
Haywood was put on leave after an internal investigation into his record-keeping and risk management. At the time, GAM warned it was braced for outflows as a result.
At 9.30am in the UK, shares in GAM had lost 14% of their value. This followed the 20% slump following Haywood's suspension.
GAM chief executive Alexander S. Friedman said: 'We are fully committed to safeguarding the interests of our clients.
'We are working with the relevant fund boards to ensure that we maximise value and liquidity for ARBF investors, and are looking at establishing alternative structures for clients who want to remain invested with the ARBF team.'
The four funds impacted by the suspension are the GAM Star Absolute Return Bond, GAM Star Absolute Return Bond Plus, GAM Return Bond Defender and GAM Star Dynamic Global Bond funds. Between them, the funds held CHF 7.3 billion (£5.6 billion) in client assets.
The company is also considering further steps, such as fund liquidations.
GAM added that there is necessary liquidity available to meet redemption requests but the size of these withdrawals would disproportionally shift the composition of the funds, necessitating further action.
The Zurich-headquartered group said no other part of the business is affected by the decision to suspend dealing in the unconstrained and absolute return bond funds.