Gartmore Probe Weighing On Assets, Revenues, Inflows

Apr 12 2010 | 12:57pm ET

Gartmore Group’s new rules on directing trades could cost it £500 million, according to Morgan Stanley.

The investment bank warned its clients that the suspension of trader Guillaume Rambourg, a colleague of star manager Roger Guy, will cause a 20% drop in its revenues and big outflows over the next three months, the Financial Times reports. Rambourg was suspended for allegedly violating internal rules last month, and remains on leave pending an investigation.

And the longer that probe lasts, the worse things are likely to get for Gartmore, Morgan Stanley said.

“The risk of redemptions is higher the longer the internal investigation continues,” it wrote.

Redemptions are not the only risk: Morgan Stanley has cut its projected inflows into Gartmore hedge funds by one-third to £1.4 billion for next year.


In Depth

Q&A: George Schultze On His Fund's Unique Approach to Distressed Investing

Apr 16 2015 | 1:01am ET

George Schultze is a managing member of Schultze Asset Management, a long/short...

Lifestyle

Puerto Rico Woos The Rich But So Far Gains Little

Apr 17 2015 | 2:45am ET

Hedge fund manager Rob Rill grins. He has just had word that U.S. financial regulators...

Guest Contributor

Minnesota Supreme Court Rejects The Ponzi Scheme Presumption: Lenders Claw Back Some Of Their Own Rights

Apr 17 2015 | 9:23am ET

A recent court ruling in Minnesota has put an end to the Ponzi Scheme Presumption...

 

Editor's Note