Hedge Fund Weiss Buys Up Gartmore Fund Shares

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.


In Depth

Steinbrugge: Will Hedge Funds Help or Hurt During the Next Market Correction?

Sep 7 2016 | 11:55pm ET

Most investors have become accustomed to quick rebounds when markets correct, but...

Lifestyle

Quattrex Sports AG Debuts Soccer-Focused UCITS Fund

Sep 9 2016 | 9:54pm ET

Innovative alternative investment company Quattrex Sports has unveiled a new UCITS...

Guest Contributor

Malik: The Ever-Changing Middle Market and The Entering Class of 2016

Sep 2 2016 | 5:01pm ET

Deal sourcing and origination is only going to get more competitive given current...