One of London’s best known hedge funds, Gradient Capital Partners, is in severe difficulty after dropping nearly 42% in value in September, reports the Daily Telegraph. The City-based European equity fund, which had $2.5bn under management at its peak, is now down over 63% so far this year, leaving investors fearful it will be forced to close. The “blow-up” is a mighty fall for the founders, Ivor Farman and Scott Pagel, who famously paid themselves £100m each over two years after producing stellar returns to their investors. The pay deals placed the pair among the 30 wealthiest UK hedge fund managers. Gradient made a net investment return for its investors of 56% in 2005 and 47% in 2006. On Thursday, sources close to Gradient insisted that Farman and Pagel are determined not to close the fund and are working on ways to resuscitate the business.

This entry was posted by Gwen Robinson on Friday, October 17th, 2008 at 5:36 and is filed under Capital markets, Hedge funds. Tagged with Gradient. Edit this entry.