AzValor has lost almost all his analysis team, as five of six analysts have step down to join the new boutique of top asset manager Francisco García Paramés.
According to reports from El Confidencial, the team joined azValor with expectations of Paramés being the next addition of the Madrid based asset manager once its non-compete clause expired, two years after his departure from Bestinver.
Since Paramés has decided to set up its own investment venture, the analysts had to chose and eventually have opted for Paramés.
Carmen Pérez, Iván Chvedine, Juan Huerta de Soto, Juan Cantus and Mingkun Chan have all resigned from azValor, with only Jorge Cruz remaining at the asset management firm.
AzValor’s director of trading Mayte Juárez and director of major accounts Santiago Cortezo have also joined Paramés from azValor.
The resigning team had worked with Paramés during his time with Bestinver, the asset management arm of Acciona.
Paramés spent 25 years at Bestinver where he managed above €7.5bn in Spanish and international stocks, with returns doubling the 7.8% annual increase in the Madrid stock market since 1993.
After Paramés departure, Bestinver saw large fund outflows, and the firm’s assets under management dropped by 30% or $2.5bn ($2.2bn), according to data from Lipper.
AzValor partners, Álvaro Guzmán de Lazaro, Fernando Bernad and marketing director Beltrán Parages, will have to rebuild their team now and convince investors to remain with them to avoid outflows. Back in September, European equities fund azValor Internacional recorded a 21.24% return as at 9 September. AzValor fund had attracted €645m of net inflows from January through 31 August.