Carrousel: Control Of Gartmore Trust Not In The Offing

Feb 28 2007 | 11:07am ET

London hedge fund Carrousel Capital went on the defensive yesterday regarding its intentions toward the £398 million Gartmore European Investment Trust, a closed-end fund. In a letter to shareholders urging support for his three nominees to the trust’s board, Carrousel founder and CEO Bruno Sanglé-Ferrière said his fund, which owns nearly 30% of the trust’s shares, did not want control of the trust and would not seek to liquidate the fund.

“The Board has stated: What does Carrousel want with the Company? What do Carrousel’s nominees intend to do?” Sanglé-Ferrière wrote. “The answers are quite clear: Carrousel wants the fund to deliver real shareholder value.”

The hedge fund manager also took the board to task for refusing to release the results of a recent corporate review. “What have the Board got to hide?” he asked.

Sanglé-Ferrière warned that, while he agrees in principal with the trust’s share buyback program, he threatened to vote against the proposed reauthorization to keep that authority aware from current management, led by manager Roger Guy.

Win or lose, Sanglé-Ferrière said his days as the trust’s largest shareholder are numbered. He told Reuters that he’ll stay in for a whole “to show my support,” but that he expects to unwind his investment “by the end of the year, maybe shorter, maybe longer.”


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...

 

From the current issue of