Gartmore Out £1 Billion In Wake Of Rambourg Suspension

May 17 2010 | 1:20pm ET

The month-long suspension of one of its top traders has cost Gartmore Group in excess of £1 billion.

The London-based hedge fund said that its assets rose 1% during the first four months of the year, thanks to strong performance. But that figure masks an outflow of £834 million in April, following Guillaume Rambourg’s suspension on suspicion of violating internal firm policy on March 30.

By contrast, Gartmore took in £126 million in new money during the first quarter.

Gartmore reinstated Rambourg, who, along with star manager Roger Guy oversees some 37% of Gartmore’s assets, at the end of last month. But that wasn’t quickly enough to stop another £380 million in redemptions on May 4, Financial News reports.

All told, Gartmore managed £22.4 billion at the end of last month.

Gartmore found that Rambourg did violate its rules against directing trades to favored brokers, but that his actions did not cause any losses and were not dishonest. He is currently working as an analyst until the Financial Services Authority approves his return to trading and managing client money.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...