Gartmore left to reassure as star walks out
Embattled UK fund firm Gartmore raced to reassure investors and clients yesterday as its shares fell following the resignation of former star trader Guillaume Rambourg to focus on a regulator probe.
Head of global alternatives Paul Graham said the departure of Rambourg would not affect management of Gartmore funds, but the company’s shares closed 5.5 per cent lower at 104p, having previously fallen as low as 100p.
They are trading at less than half their IPO price in December and not far above their lifetime low of 97p, hit in March, when Rambourg’s suspension was first announced. “The way Gartmore handled this (months-long situation with Rambourg) was a gigantic own goal,” said one analyst, who declined to be named in order to speak candidly. “They overreacted and got the FSA involved.”
Gartmore announced Rambourg’s departure late on Wednesday, after the market had closed, saying he would focus on the ongoing FSA investigation.
The probe – which could take years to resolve – was announced last month after an internal investigation found Rambourg had breached internal regulations by directing trades to specific brokers.
“Guillaume was an investment analyst in his latter days. (Star manager) Roger (Guy) was still in charge. He’s been the main man since inception,” Graham said.