Roger Guy’s announcement that he will be leaving Gartmore has destroyed what was left of the hedge fund.Gartmore’s end might be seen as a total destruction at the hands of one man, or it might be considered a mercy killing.
In less than a year, the fund has gone from one of the biggest hedge funds in the world, managing £5.5 billion, to asking Goldman Sachs to negotiate an emergency merger or sale.
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.
Many investors pulled their funds, and Gartmore has been on shaky ground ever since. For months the fund then rested on the hands of the one remaining star portfolio manager, Roger Guy.
Despite scrambling to find another headliner, Gartmore left itself in an extremely vulnerable situation, with the vast majority of funds invested strictly because of Guy.
And then, today came, and Roger Guy announced his retirement. The fund is toast. It’s shares are plummeting.
And of course Gartmore is still slapping its forehead over why they suspended Guillaume back in February. Had they not, the fund might still have a future.
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