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’Snap news
Breaking pre-market news on Thursday,
- Glencore to raise $9bn-$11bn in London IPO — statement.
- BP and Rosneft extend share swap deadline to May 16 — statement.
- Commerzbank prices cash call at €4.25 a share — statement.
Worth every penny
How about this as a reward for failure…
Jeffrey Meyer, who masterminded a truly spectacular destruction of shareholder value as chief executive of Gartmore, has landed a $6.1m payoff.
From Bloomberg.
Snap news
Breaking pre-market news on Wednesday,
- Commerzbank returns to profit; posts net income of €1.4bn in 2010 – statement.
- Rio Tinto receives $340m Imersys offer for talc assets — statement.
- AP Moller-Maersk says 2011 weak for tanker business — statement.
Snap news
Breaking pre-market news on Wednesday,
- Gartmore recommends £335m (92.1p a share) offer from Henderson — statement.
- Sainsbury reports like-for-like sales growth of 3.6 per cent over Christmas — statement.
Shorting a tarnished fund management group
Hmm.
Have you been wondering why the share price of Gartmore has remained firm in spite of all the recent dismal news?
Stuff like this, for example (from Reuters on Wednesday):
SIGNIFICANT PORTION OF 3.5 BLN STG OF ASSETS MANAGED BY GARTMORE FUND MANAGER ROGER GUY LIKELY TO BE REDEEMED – SENIOR GARTMORE SOURCE
One answer could lie in short covering (chart via Data Explorers):
For sale: one tarnished fund management group
More over Ocado, make way Promethean World, fund management group Gartmore has cemented its position as the worst UK IPO of recent years with a truly shocking statement.
In fact Monday’s third-quarter trading update is so bad it’s difficult to know where to start.
Snap news
Breaking pre-market news on Tuesday,
- Resolution reveals first-half profit of £203m — statement.
- Gartmore posts first-half EBITDA of £38.8m; AUM down 10 per cent on year — statement.
- Carlsberg H1 operating profit tops forecasts – statement.
Key man risk all over again [updated]
You’d think Guillaume Rambourg’s exit from Gartmore would be priced in by now.
And you’d be wrong. Some early share action on Thursday:
How much key man risk is left, we wonder?
Update (8.55 GMT):
Star trader Guillaume Rambourg resigns from Gartmore
Guillaume Rambourg, the star hedge fund veteran at the FTSE-listed UK asset manager Gartmore has resigned from the firm.
Here’s the RNS:
Gartmore Group Limited
ANNOUNCEMENT REGARDING GUILLAUME RAMBOURG
London,
Dear hedge fund investor… May has been a … multidirectional month
It’s not so much the depth of the losses — though in some instances they have been nasty — but rather, their breadth; across strategies, asset classes and managers, that has made May a particularly painful month for much of the hedge fund industry.
Key man risk, redux
Star Gartmore trader Guillaume Rambourg is returning to work, the fund management group triumphantly told the City on Wednesday.
Gartmore today announces that following the completion of an internal investigation Guillaume Rambourg,
Key man risk, defined
Ever wondered what it might look like?
Here’s the answer:
Since Gartmore announced Guillaume Rambourg, one of its star fund managers, had been suspended on Tuesday afternoon the share price of the fund management group has fallen almost 45 per cent,
Fund management flop
Oh dear. Shares in Gartmore are trading below their revised flotation price on Monday morning.
Recall, that Gartmore was forced to cut the price of its £676m IPO on Friday to 220p per share, down almost 16% from the mid-point of its target price range.
Gartmore IPO pricing could disappoint
Actually, it almost certainly will disappoint.
One of the first large UK initial public offerings since the outbreak of the financial crisis is on track to close on Friday, but is likely to raise less money than first planned.
Gartmore fillip for Europe’s IPO market
After last week’s Hochtief Concessions IPO car crash, here’s some good news for all those European companies jostling to come to market in 2010.
Private equity-owned fund manger Gartmore’s ₤400m flotation is fully subscribed three days before the books officially close,
Snap news
Breaking pre-market news on Friday,
- Gartmore announces intention to list on the LSE – statement.
- Nationwide Building Society posts half-year PBT of £143m – statement.
- Big shareholders ask Goldman Sachs to cut bonuses – WSJ (via Reuters).
Gartmore on brink of £500m IPO
Gartmore, the fund management group equally owned by management and buy-out group Hellman & Friedman, aims to register flotation plans with the UK’s FSA as early as next week. The group has appointed Morgan Stanley and Citi to advise it on completing an IPO by year-end.
Bolder funds seek out ‘frontier markets’
The success of emerging markets such as China, India and Brazil has pushed fund managers to seek investment in a new crop of unexplored economies, the so-called “frontier markets”, the FT reports on Tuesday.
The crisis isn’t with the hedge funds, but the banks
As most hedge fund managers will insist, it wasn’t their models that went wrong, it was the market. “Markets can remain irrational longer than you can remain solvent,” observed Keynes, and he was right.
Gartmore proves (some) investors still optimistic
Gartmore has raised more than $200m extra for a hedge fund run by star manager Roger Guy, confirming that many investors are prepared to put in new money despite fund implosions and choppy markets. The fundraising by the private equity-owned group’s Alphagen Tucana fund comes as many big hedge funds are preparing to launch specialist funds to buy distressed debt,
Use of ‘cov-lite’ deals spirals despite warnings
The use of so-called “cov-lite” deals is snowballing in Europe and the US, in spite of warnings from regulators and financiers that these instruments could produce new dangers for investors if the credit cycle turns.
Gartmore European sees off hedge fund challenge
Gartmore European’s board emerged victorious from a showdown with hedge fund Carrousel Capital as private shareholders backed the board against Carrousel’s rival slate of shareholders. Carrousel holds 28 per cent of shares in the investment trust,
Gartmore European set for AGM merry-go-round
Gartmore European Investment Trust goes into Wednesday’s AGM preparing to face down agitated hedge fund investor Carrousel Capital. Carrousel, a 28% shareholder in the investment trust, wants to put three independents on the board but Gartmore has so far refused to dance to its tune.