Report: Gradient On The Brink After 63% Loss

Oct 17 2008 | 12:00pm ET

London hedge fund Gradient Capital Partners is in big trouble as losses continue to pile up.

The firm’s US$2.5 billion European equities hedge fund is down 63% this year, leaving it on the brink of collapse, The Telegraph reports. According to the newspaper, the firm’s founders, Ivor Farman and Scott Pagel, are determined not to close the firm, and may have a structural advantage over peers who are also facing big losses.

“The fund has been badly hit by poor performance and big redemptions,” one source told The Telegraph. But, noting that the firm employs just four people, noting that “it has been sensible to keep its cost base down so it will probably tough it out and re-emerge at the other end.”

Of course, Gradient hasn’t kept all costs down: Farman and Pagel paid themselves £100 million (US$172.5 million) each over the past two years, after the fund posted a 56% return in 2005 and 47% in 2006.


In Depth

Kettera Q&A: The Advantages of Alternative Investment Platforms

Oct 28 2016 | 5:52pm ET

The past several years have seen a distinct push towards easier and cheaper access...

Lifestyle

Midtown's Plaza District Fades As Manhattan Office Landscape Shifts

Nov 22 2016 | 6:32pm ET

Lower leasing costs, more efficient office space and the hope of projecting an image...

Guest Contributor

Nowhere to Hide: Why the Future of Asset Management Depends on Innovation

Nov 15 2016 | 6:55pm ET

Information technology has reshaped the asset management industry’s periphery,...

 

From the current issue of

Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

AVAILABLE NOW at BARNES & NOBLE

NEWSTAND LOCATOR