Harris Associates, one of Credit Suisse’s (CSGN.S) major shareholders, has sold its stake in the Swiss bank over the past few months, the deputy chairman and chief investment officer of the activist Chicago-based investor, David Herro, said on Sunday.
Herro did not give a reason for the stake sale, but earlier told the Financial Times that Harris had sold the stake after losing patience with Credit Suisse’s strategy to stem persistent losses and a client exodus.
Harris, which had remained loyal despite a string of scandals at Credit Suisse, disclosed a stake of about 10% in the bank last August but reduced it to 5% in January.
Harris had started to cut its exposure in October after Credit Suisse raised 4 billion Swiss francs ($4.3 billion) from investors and when Saudi National Bank supplanted it as the top investor, Herro told the Financial Times, which first reported the news that Harris had sold all its shares.
“There is a question about the future of the franchise. There have been large outflows from wealth management,” the newspaper quoted Herro as saying.
Credit Suisse reported a sharp acceleration in withdrawals in the fourth quarter, with outflows of more than 110 billion Swiss francs.
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