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Carmignac founder: ‘Not selling my firm is my obsession’

Carmignac founder Edouard Carmignac has defended the independent status of the business saying he won’t sell the boutique firm to a bigger company.

Speaking at an event in Paris, Carmignac, who is both chief executive and chief investment officer addressed investors saying while there are no immediate plans for a successor to take on his role, the €56bn (£50bn) asset manager is willing to retain its independent status.

The 71-year-old said: “The greatest disservice I could do to all of you and the overall team at the firm would be to sell this firm to an institution.

“There have been no successes to my knowledge of a fund management firm being bought out by an institution to prevail and keep going well. So it has become my obsession not to sell.”

Carmignac wants his team to remain strong and says he will take more on a “godfather” role at the firm, focusing more on his CIO duties.

He adds: “I will select in due course my successor but it’s not only my decision.”

In his opening remarks at the event, Carmignac admitted the asset manager has suffered a period of underperformance in 2017 largely due to changes in the market, such as the stronger Euro.

However, he added the team’s macro analysis “will recover its rationale” while the market cycle gradually normalises.

In 2017, the firm’s €22bn giant flagship fund Carmignac Patrimoine saw returns of 0.09 per cent, with outflows representing 7 per cent of its assets.

“If we don’t make any mistake on the implementation of the strategy, 2018 should mark the comeback of Carmignac,” said Carmignac head of cross asset Frédéric Leroux, also speaking at the event.

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