It seems like Gatmore’s implosion has only been a matter of time ever since Guillaume Rambourg, one of the firm’s star portfolio managers left.Six months later, when the firms other top PM, Roger Guy, left, the fund became basically just a shell of its former self.
So it’s no surprise that Gartmore is most likely cutting 35 employees.
According to Reuters, the firm told 35 support staff that their positions were “at risk” yesterday. Ouch, but at least they warned them.
Gartmore has ~300 employees, and only one PM, John Bennett, so unless the firm’s emergency merge with another takes off, more layoffs are almost certain.
How did this happen?
We’re not certain, but, if we were to guess, we’d say that Gartmore is still slapping its forehead over why they suspended Guillaume back in February. Had they not, the fund might still have a future.
The quick demise of Gartmore began less than a year ago, the day it suspended one of its two star portfolio managers, Guillaume Rambourg.
Rambourg’s reputation was scandalized by the suspension, which turned out to be unfounded, and he resigned from the fund months later, in July.
And now Guy is gone and the fund is toast.
But of course, it’s not like Gartmore is the only hedge fund struggling a bit. Yesterday we heard that four top people left Bluecrest, one of the UK’s biggest funds. And DE Shaw, Man Group cut or plan to cut at least 10% of employees.
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