We didn’t think things could get worse for Gartmore, the former £23.5 billion hedge fund, but they have.If you’ll remember, Gatmore has been imploding ever since Guillaume Rambourg, one of the firm’s star portfolio managers left.
Six months later, when the firm’s only other top PM, Roger Guy, left, the fund became basically just a shell of its former self.
The only thing left to do was get taken out by another firm, which it did, with the Henderson Group.
After Henderson bought the fund for $523 million (which shows you how cheap the fund, which managed £23.5 billion before Rambourg resigned, has become), its CEO, Andrew Formica, has been slowly taking over Gartmore.
The deal, scheduled to be completed in April, seemingly happened for one main reason: because there are still 12 remaining fund managers left to manage Gartmore’s many remaining assets (~£16 billion).
But that was back when Gartmore still had investors. They’re dropping like flies.
Really, this is just getting sad.
The news today: in the past seven weeks, Gartmore has lost £810 million ($1.31 billion) to redemptions.
We thought Roger Guy mercy killed this thing back in November. Obviously, we were wrong. Gartmore is a huge beast and it’s still twitching with ~£16 billion under management.
So who’s going to take the final shot?
Of course there’s always a chance for a comeback. Sadly, more pain is probably coming. Hedge funds are launching all over the place, so there’s no shortage of places for investors to move their money.
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