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Leaving Bestinver - any other options?


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Spanish Fund Manager Parames leaves Bestinver, the award-winning mutual fund in Spain.




I am looking for a new fund or ETF to move my money in. I already have BRK-B's and S&P500 and with the current EURO/Dollar rate, I wish not to buy more funds or stocks in $. Good European funds or ETF's are really hard to find. Anybody got some idea's that are worth checking out?

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Bad news, a large part of my funds was with Bestinver and I planned to hold it for years. I'm also going to look for something else, but I'll stick with the current stock portfolio for the time being. The cheap euro is limiting most investment alternatives to Europe at the moment.

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  • 3 months later...

Bestinver loses 30% of its assets after the departure of Francisco Garcia Paramés - elEconomista.es

Looks like he has a 2 year non compete and tries to buy himself out for 30M.




Translated from Spanish:


When a manager leaves the company reputable is leaking investors

Bestinver, a leading investment managers in Spain, has seen a loss of around a third of its assets under management in 2014 after the departure of its prestigious CEO, Francisco García Paramés, the last company in the industry to be victim of the "key man risk".

Paramés, who co-led most major funds of the firm, resigned in late September after 25 years with the company and 2 key managers, Álvaro Guzmán de Lázaro and Fernando Bernad, they followed suit on Monday.

Paramés told Reuters through a spokesman that he had left the company due to disputes over the strategic direction of the manager, who wanted to expand its investor base while Paramés was in favor of focusing on a core of investors with high levels of liquidity.

Bestinver also intended to start trading with bonds, as he showed a letter from its president Paramés, a move that this disapproved, the spokesman added. The firm did not comment on the departure of Paramés when Reuters asked.

Victim of "key man risk"

Bestinver, the Spanish group Acciona, saw its assets falling to 5,700 million at the end of December from 8.200 million a year earlier, according to Lipper data showed a decrease of 30%.

Most of the losses of all funds managed by the company took place from September to late December, with the flagship Bestinfond FI losing more than $ 750 million in assets during September and October.

The ability of a manager renowned leaving the company to cause leakage of investors has proven several times in recent months, especially in the case of walking Pimco founder Bill Gross, who was with him billions of dollars to his new company.

Javier Sáenz de Cenzano, CEO of analysis in the Iberian Peninsula and Italy to Morningstar, noted that all products Bestinver low coverage had been degraded "gold" to "neutral" after the resignation of Paramés.

"We think Paramés and 2 co-managers of portfolios have been critical in the success Bestinver funds have had for a long time," he said.

"They were key managers in making decisions in a process where the fundamental analysis of equities from the bottom up was the main instrument to reap benefits," he added.

An approach based on value

Paramés adopted an approach based on the value for their investment, a term popularized by competitors like Warren Buffett style, trying to find undervalued equity products waiting for you to appreciate in the medium to long term.

The fund Bestinfond FI won 65.4% in the 5 years before the end of 2014, according to data from Lipper, compared with an increase of 31.2% in the Euro Stoxx 50 index over the same period, with dividends reinvested .

The estimate of the company itself on assets that have left their funds, reported in an internal presentation to which Reuters had access, the are around 2,800 million euros between September 23, the date of resignation Paramés, and November 30.

Bestinver said, in any case, much of those assets owned by institutional investors who have a formal obligation to withdraw funds if the management changed. Norgues Bank Investment Management was one of those investors, de Cenzano.

Capital flight has been standardized since early November, according Bestinver. Lipper estimates that the net outflow of all funds of the firm in December was $ 285 million.

Bestinfond records, meanwhile, improved slightly after the departure of Paramés, showing an increase of 1.2% between late September and late December, from an increase of 0.7% per year, according to data revealed.

Meanwhile, Bestinver has renewed its management positions, hiring Beltrán de la Lastra from JPMorgan Asset Management as chief investment officer, and Ricardo Cañete of Mutuactivos as head of equity in the Peninsula. Morningstar was cautious.

"Our general view is that the company has gone through a period of great turmoil, with significant changes in their culture and investment team. We still have to see how far they can change the investment process," said de Cenzano.

Paramés spokesman said his departure was linked to a non-competition clause 2 years he expected the company to revoke accept return of about 30 million euros to allow you to embark on a new project, probably in London. Bestinver, in any case, has yet to respond to the offer, the source added.





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Peter 1234. Thanks for the info. Do you have any info where the two co-managers are headed to?


Álvaro Guzmán de Lázaro and Fernando Bernad, they followed suit on Monday.


I do not have any more info. They might have non competes as well. Maybe the 3 of them want to set up a new fund together? Just speculating.


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