Tiff At Top As Gartmore Faces Skeptical Investors

Apr 5 2010 | 1:02pm ET

Gartmore Group may face redemptions following the suspension of one of its top hedge fund managers, but the firm’s CEO says clients are sticking with the firm so far—despite the unhappiness of Gartmore’s star manager.

The London-based firm last week suspended Guillaume Rambourg on suspicion that he broke Gartmore’s internal rules by directing trades. The news promptly sent the firm’s shares into a tailspin and many of its clients to the phones, CEO Jeff Meyer said. But while many have expressed their concern, few are yanking their money as of now.

“Clients greatly appreciated hearing about it from us, but the reaction has been guarded,” Meyer told Reuters. “We’re having lots of discussions [last week] with large shareholders and clients.”

One of those conversations, however, took a turn that cannot have made Meyer happy. Roger Guy, co-manager of Gartmore’s hedge funds with Rambourg, blasted the firm’s “excessive” rules and took a shot at Meyer’s leadership.

“I’ve never been involved in the day-to-day management of the firm, but maybe I should have been after this,” Guy said on a conference call with investors, the Financial Times reports.

“I didn’t agree with the rule when it was introduced” in December, following Gartmore’s initial public offering, Guy added. “I thought it was excessive.”

Gartmore’s star hedge fund manager also offered a full-throated endorsement of his suspended co-manager, adding that he hoped Rambourg would be back within a month.

“Guillaume has my full support,” Guy said. “He’s a fantastic person and a fantastic fund manager.”

In Depth

Related-Company Fees: Normal Industry Practice or Conflicted Compensation?

Nov 11 2015 | 4:23pm ET

Regulatory agencies as well as investors are increasingly exploring whether certain...


Ferrari Roars in Wall Street Debut

Oct 21 2015 | 4:28pm ET

Shares of supercar maker Ferrari jumped as much as 15 percent to a high of nearly...

Guest Contributor

Private Debt - What is the Opportunity?

Nov 11 2015 | 3:28pm ET

In this contributed article, Rob Allard, founding partner of Firebreak Capital...


Editor's Note

    Oct 21 2015 | 10:41am ET

    One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…