London-based firm Gartmore, which manages approximately $3.5 billion in hedge fund assets, has announced it will start distributing third-party funds, Reuters reports. The justification comes because the firm claims that it cannot make enough products to satisfy demand.
"Frankly, we can sell more than we can produce by a significant margin," Chief Executive Officer Glyn Jones told Reuters.
The CEO is currently eyeing small boutiques for distribution in Japan, the U.S. and Europe, as he believes "there is still a solid demand for hedge funds that can show a good performance."
Jones stated that the first distribution alliance would be announced in two to three weeks, but declined comment as to whom they would be working with, or in what area or strategy.
He further asserted that Gartmore differentiates itself from small hedge funds which, even though they, "are successful in terms of performance, do not have the ability to reach out to broader investors" through the kind of "institutional strength, licenses, regulatory expertise, distribution [and] sales force" that Gartmore has.
Gartmore is 90% owned by Nationwide Mutual Insurance Co., which is U.S. based. The firm reports total assets of around $80 billion and expects its hedge fund assets to rise to $4 billion by the end of this year.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.