|U.K. companies are on alert now as the Financial Services Authority investigates insider trading. Last week, Gartmore Investment Management suspended hedge fund manager Guillaume Rambourg who CEO Jeffrey Meyer suspects of breaking the firm’s rules by conducting buy and sell orders for a select group of brokers. According to a recent Bloomberg article, the compliance managers of the firm’s central desk that directs trades discovered the illicit activity on March 24th, notified the FSA the day after, and suspended Mr. Rambourg’s on March 30th. Two hours after the suspension, Gartmore’s market value had already dropped by almost one-third. |
Mr. Rambourg, who spent over ten years managing some of the U.K.’s most successful hedge funds, managed £8.1 billion at Gartmore – over a third of the firm’s total assets – with Robert Guy. Mr. Rambourg and Mr. Guy, who is not being investigated, managed the firm’s $2.3 billion Alphagen Capella and $828 million Alphagen Tucana funds since their launches in 1999 and 2005, respectively. According to Bloomberg data, Tucana ranked among the top 20% of similar funds by returning 42% in 2009 while Capella grew by 12% in 2009. In February, the two managers won EuroHedge’s 2009 award for best European Equity Fund exceeding $500 million.