Saturday, 24 September 2016
Last updated 1 day ago
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.