The financier Edouard Carmignac passes the baton smoothly

David Older, head of equity management since 2017, has just been appointed manager of Carmignac Investissement, the fund created and managed by Edouard Carmignac himself for nearly 30 years.

The financier Edouard Carmignac takes a step back

Handover in good and due form at Carmignac. David Older, head of the Carmignac equity team since 2017, has just been appointed manager of Carmignac Investissement, the historic and emblematic fund of the management boutique, created and managed by Edouard Carmignac himself for nearly 30 years. “Edouard Carmignac, as director of investments and co-manager of Carmignac Patrimoine, will thus be able to concentrate on the overall strategic allocation of the fund,” the company indicates. In other words, at 71, the co-founder of the Place Vendôme house, begins to take a step back and give up his hand on the management side.

David Older will also be in charge of the equity portfolio of Carmignac Patrimoine and co-manager of this other emblematic fund alongside Edouard Carmignac and Rose Ouahba. He was already part of the tightened investment management team which also brings together Rose Ouahba (head of bond activity), Frédéric Leroux (head of “cross asset”, i.e. risk management, exposure to currencies…) and Didier Saint-Georges.

Transition management

“At Carmignac, we talk about managing the transition, never succession”, laughs a good connoisseur of the house. “I now have the wealth of talent needed to be able to focus my attention on shaping strong market convictions that are essential to long-term performance. This was possible because I have total confidence in David Older to whom I have already gradually started to delegate the management of our international equity portfolios over the past few years, ”says Edouard Carmignac.

David Older was recruited in 2015, as senior equity manager, after 12 years of collaboration with Steven Cohen in the hedge fund SAC Capital (renamed Point 72). He was expected to be Edouard Carmignac’s runner-up on the equity management side, but “it took a little time to confirm that he was the right person”, remarks Didier Saint-Georges.

In total, the management of the transition will have lasted nearly five years. Years marked by disappointing performance and erosion of outstandings (54 billion euros at the end of July 2018 against 58 billion at the end of 2016). “We had to arm the management company for the next few years. After this smooth transition, we will be able to move forward and focus on performance, ”continues Didier Saint-Georges.

A figure in asset management

In thirty years, Edouard Carmignac has become one of the most prominent figures in the world of asset management. The success of its management company created in 1989 with Eric Helderlé is a model for all independent shops. Passionate about art, he created in 2000 a foundation which includes nearly 300 works, exhibited since this summer on the island of Porquerolles. He also distinguished himself by sharing his taste for rock from the 60s and 70s by inviting his clients and his teams to private concerts by the Rolling Stones, Neil Young, Lou Reed or Eric Clapton.

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