Gartmore Outflows Grow In Wake Of Rambourg Suspension, Exit

Aug 17 2010 | 1:00pm ET

Investors fled the Gartmore Group in the second quarter following the firm’s suspension of one of its top hedge fund managers.

The London-based firm said that investors pulled £1.8 billion pounds between April and June. That, combined with performance losses, left the firm £3.6 billion lighter at the end of the quarter than at the beginning.

The outflows were, at least in part, the result of the suspension of Guillaume Rambourg, one of Gartmore’s star managers, for violating internal firm policy. Rambourg was reinstated after a month, but left the firm last month to battle a Financial Services Authority investigation of him.

Rambourg’s departure has exacerbated Gartmore’s outflows. The firm lost another £305 million through Aug. 2 and has received another £223 million in redemption notices for Sept. 1.

It all added up to a rough first half for Gartmore, which said its net income for the first six months of the year dropped by almost two-thirds to £18.8 million.

“It was without a doubt a challenging six months,” CEO Jeffrey Meyer said. “It was six months that we really didn’t anticipate. We have frankly had to hit the reset button because of the regulatory issues around Guillaume on what we thought was a sound strategy.”


In Depth

Fundraising for Mid-Sized PE Funds: Should You Use a Registered B/D?

Dec 6 2016 | 7:18pm ET

When does a fund sponsor need to use a registered broker/dealer when raising capital...

Lifestyle

Trump Attends 'Villains and Heroes' Costume Party Dressed As...Himself

Dec 5 2016 | 11:16pm ET

U.S. President-elect Donald Trump attended a "Villains and Heroes" costume party...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Since the inception of Modern Trader, a core editorial theme has centered on the wisdom and power of crowds. Editorial emphasis has focused on companies and projects engaged in the collection and analysis of information. 

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR