Rambourg was suspended yesterday pending the outcome of an internal probe regarding breaches in directing trades. The move was made in consultation with the FSA.
A Reuters source close to Gartmore believes there is no timeframe for an end to the investigation and that the suspension was a “completely hideous coincidence”.
The news comes hot on the heels of press speculation of a link between Gartmore fund manager Roger Guy and Exane BNP Paribas head of equities Clive Roberts, who is being investigated as part of the insider dealing probe by the FSA. Seven men were arrested last week as part of the investigation, with Deutsche Bank, US hedge fund Moore Capital and London broker Novum Securities all understood to have been drawn into the investigation.
Gartmore says that the suspension does not relate to that investigation while a Reuters source close to the FSA also said the suspension was not related to the joint investigation into insider dealing launched by the FSA and the Serious Fraud Crime Agency.
Gartmore shares have plummeted by over 33.2 per cent from its opening price on Monday of 173.60p to 116p at close of trading on Tuesday. At 8.39am on Wednesday shares had bounced back slightly to 119.5p, an increase of 3.02 per cent.
Guy and Rambourg manage a number of high profile mandates, including the AlphaGen Capella hedge fund and the European absolute return fund. Between them the pair managed over 20 per cent Gartmore’s £21bn of investments. Guy will take on full responsibility for the funds.