Wednesday, 20 August 2014
Last updated 3 hours ago
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.
Aug 4 2014 | 7:42am ET
By now, U.S. and international subscribers have received their home or office delivery of the special 500th issue of Futures magazine. You can too!—a very special offer follows. The issue is the 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. Read more…
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 Editor's Note