Search This Blog

19 Feb 2007

Major Hedge Fund Shareholder Proposes Restructuring of Trust

Hedge fund Carrousel Capital has submitted proposals for a restructuring or merger of the Gartmore European investment trust, of which Carrousel owns 28.03% and is its largest shareholder.

Bruno Sangle-Ferriere, founder of British-based Carrousel, said he would make an announcement to the Stock Exchange on Friday or early next week.

Carrousel Capital said in informal talks with Gartmore that the hedge fund aims to buy into undervalued closed-end funds, restructuring it into an umbrella fund which could offer a range of investment mandates and which could take over or merge with other funds.

Gartmore Chairman Rodney Dennis said on Thursday. "We have had a couple of meetings (with Carrousel), but we've been unable to get a clear idea of what's being proposed,"

Over the past five years Gartmore European's net asset value has risen 72%, compared with a 51% return from the FTSE World Europe excluding UK index. "Performance has been very good, it's on a very tight discount, the manager is highly regarded and shareholders are happy. It is a bit mysterious that there is even an issue around Gartmore European," Dennis said.

Gartmore Chairman John von Spreckelsen and director Bruno Merki retired in September. The trust said at the time that the changes were due to corporate governance pressures and not the result of shareholder pressure.

No comments: