Gartmore Sees Inflows Following Rambourg Reinstatement

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.


In Depth

Q&A: Omni Macro Fund Bullish On India, Watching China

Mar 4 2015 | 3:35pm ET

Omni Macro Fund was formed in 2007 by Stephen Rosen, previously a prop trader at...

Lifestyle

Hedge Fund Manager Out as Minnesota Wild Minority Owner

Feb 25 2015 | 2:45pm ET

New York hedge fund manager Philip Falcone is no longer a minority owner of the...

Guest Contributor

Risk Management: The Due Diligence Challenge And Branding Opportunity

Mar 2 2015 | 8:41am ET

The hedge fund firms that make it easier for prospective investors to gain comfort...

 

Editor's Note