Farman Out At Gradient As Firm’s Profit Plummets

Sep 13 2010 | 12:20pm ET

Ivor Farman has left Gradient Capital Partners, as the hedge fund he co-founded continued its downward spiral.

Farman left the London-based firm at the end of last year to pursue personal interests, Gradient said in its accounts filing. Farman and co-founder Scott Pagel made headlines in 2006 and 2007, when they paid themselves £100 million each. But the financial crisis has taken its toll on the firm, which did not impose redemption restrictions and which has seen its profit plummet almost 99%.

Gradient earned just £174,907 in the fiscal year ended July 2009. That’s down from about £13 million in the previous fiscal year and £108 million in fiscal 2007.

The firm did not disclose how much money it’s managing, but it’s clearly managing much less than in its heyday. The firm is believed to have lost 75% of its assets in 2008, and its turnover in the 12 months through last June was just over £1 million, down from £112 million in 2007.

“We have diversified the range of sectors in which we invest and are optimistic that investors are returning to the second to search for alpha,” John Gunn, the firm’s chief operating officer, told Financial News.

The poor corporate performance last year came in spite of a 21% return in 2009. Performance this year is flat, the firm said.


In Depth

Whisky Business: The Ultimate Liquid Alternative Investment

Sep 15 2014 | 7:02am ET

David Robertson knows his single-malt whisky—he was the Master Distiller at the...

Lifestyle

Hedgies Rock Out For Children's Charity

Sep 15 2014 | 8:40am ET

It's that time of year again—when hedgies trade in their spreadsheets for guitars...

Guest Contributor

Volkered: How Financial Sector Reforms are Creating Opportunities for Hedge Funds

Sep 16 2014 | 11:28am ET

New regulations have dramatically curtailed proprietary trading activity in investment...

 

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

July/August 2014 Cover

In search of the ‘new normal’ at the Fed

The Federal Reserve keeps baby-stepping toward a “normalization” of monetary policy. But just what is normal?

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.