Stock analysts are putting the thumb screws on Gartmore for more details on the suspension of star manager Guillaume Rambourg, as they caution shareholders of damage to the firm's franchise and assets.
Gartmore said yesterday Rambourg was suspended "pending the outcome of an internal investigation in relation to breaches of internal procedures regarding directing trades". The asset manager's share price plummeted 31% on the news but started to rally by 8.2% today to 125.5p. Philip Middleton, research analyst at Bank of America Merrill Lynch, suspended his recommendation on Gartmore overnight, and says he cannot form a view on the firm without further information on Rambourg's suspension. Middleton writes: "We would first need to know what Rambourg is being investigated for precis...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
