Wednesday, 27 May 2015
Last updated 15 min ago
Sep 14 2010 | 1:13am ET
Activist hedge fund Weiss Asset Management is aiming to profit from the Gartmore Group’s pain.
The Boston-based firm has increased its investment in Gartmore’s Growth Opportunities fund after that vehicle’s discount to net asset value ballooned in the wake of the resignation of its manager, Gervais Williams. That fund’s board of directors filed a notice of termination with Gartmore following Williams’ exit; it will reportedly interview other potential managers before deciding whether to fire Gartmore.
Weiss now owns 6.2% of the Gartmore fund. Its discount has more than tripled to 10%, from an average of 3% over the past year. In October, shareholders who have held the fund for more than a quarter—in other words, not including Weiss—will be able to tender their shares at a 2% discount.
“We think the board should take steps to eliminate the discount that the fund’s shares are trading at versus its net asset value,” Eitan Milgram, head of trading at Weiss, told the Financial Times.
Weiss is no stranger to the board at Growth Opportunities. The hedge fund owns a 29% stake in the Marwyn Value Investors fund, which shares a chairman, Robert Ware, with the Gartmore fund.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by partcipating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…