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: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note