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

Israeli Hedge Fund Harnesses Big Data

Jul 28 2014 | 8:10am ET

Apica Green is a multi-million dollar Israeli hedge fund that is based in Tel Aviv...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

Compelling Opportunities In The Alternatives Space

Jul 29 2014 | 9:33am ET

In an environment where many asset classes seem expensive by historical standards...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note