Gartmore Slashes Staff As Guy Fund Re-Ups

Dec 6 2010 | 4:24am ET

Gartmore Group, the embattled hedge fund manager fighting for its survival, will cut more than 10% of its staff in Britain as part of its cost-cutting efforts.

The firm, battered by the loss of top hedge fund manager Roger Guy, has laid of 35 employees, mostly members of its back office staff. The Financial Times reports that the firm, which is seeking a buyer or merger partner, does not plan any further job cuts at the moment.

When Gartmore put itself up for sale last month, CEO Jeffrey Meyer pledged to cut costs by £10 million. Investors in the firm are pushing for a deal sooner rather than later, according to Reuters, with institutional shareholders telling Gartmore "we want the company to be sold as quickly as possible," one such investor said.

Another offered that Gartmore "is running the risk of greater client outflows and poor morale, so finding a new home would be the best option."

The firm did receive something of a shot in the arm last week, when its £120 million European Investment Trust's board said it would stick with Gartmore. The fund is currently managed by Guy, but the board said that manager-in-waiting John Bennett "is a high-quality replacement."

The decision to stick with Gartmore did come with a price for the firm: The fund's board negotiated a reduced notice period to cancel its contract of three months.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note