The chief executive of GAM Holding resigned on Tuesday morning.

Alexander Friedman stepped down as the Swiss asset manager to stabilize after outflows accelerated in July.

David Jacob, a member of the Board of Directors, will temporarily replace Friedman during the search for a new CEO.

“The Group is facing some important decisions as we seek to position the business for future growth,” said Hugh Scott-Barrett, Chairman of GAM Holding AG.

“Alex and the Board of Directors jointly agreed that new leadership will better enable us to take the action necessary to support profitability and drive forward the Group’s strategy. David Jacob is the ideal person to lead the company, given both his detailed understanding of the Group and his successful track record leading asset management businesses.”

“There is a huge amount of talent in this business and there is much to be proud of in the way in which we serve our clients, our differentiated range of product offerings and the skill of our portfolio management teams in delivering excellent investment performance. David’s expertise and experience will give those teams the leadership and support they need as we focus on delivering for our clients,” he said, in a statement.

“Alex has ably led the business during a time of unprecedented challenges for the active asset management and hedge funds industry. Alex had the full support of the Board in the decision to suspend a portfolio manager in July. During his tenure as CEO he has driven a significant programme of change that has made us a more modern, diversified and cost-effective business. We would like to thank Alex for his significant efforts over the last four years and wish him well for the future,” he added.

GAM shares (SWX: GAM) have fallen as much 22% over the past nine months.