Monday, 24 October 2016
Last updated 2 days ago
Jul 7 2010 | 10:53am ET
After losing more than £1 billion as jittery investors yanked their money following the suspension of star manager Guillaume Rambourg in March, Gartmore Group said that investors are sticking by the firm—and some have even begun to return.
Rambourg’s former funds have suffered no net outflows over the past six weeks. One, a UCITS III-compliant fund, has even begun to see money come in.
“We did see outflows for a couple of weeks after Guillaume Rambourg’s suspension… but we are now seeing inflows,” Paul Graham, head of global alternatives at Gartmore, told Reuters. “Flows [into the AlphaGen Capella hedge fund] are flat. It is not Rambourg-related, it is just a factor of market conditions.”
Rambourg has since been reinstated and is working as an analyst. But the manager—who was found to have improperly directed trades to brokers—cannot begin managing money again until the U.K. Financial Services Authority signs off on it, and the regulator is currently pursuing its own probe of Rambourg’s actions.
As if Rambourg-related investor unhappiness wasn’t enough, Graham acknowledged that “the hedge fund landscape is very, very challenging.”
“May was incredibly challenging,” he said. “It almost felt like the dark days of 2008 again.”
In response, Gartmore’s funds have slashed their exposure to the markets and are focusing more attention on short-term opportunities.