Swiss private bank Julius Baer's premium valuation is less likely as a result of outflows from poorly performing hedge funds within its GAM asset management division, according to brokers Keefe, Bruyette & Woods.

In a newly published circular, KBW said: "We expect Baer to be one of the most exposed European financials to the recent turmoil in the hedge fund market given the gearing to GAM, which contributes a third of its profits."