Thursday, 2 October 2014
Last updated 53 min ago
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.”
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
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