Renowned investor Francisco García Paramés today launched a new book charting his time in experience in the world of value investing, reports Citywire’s Jesus Sobral from Madrid.
The publication of the book, entitled Investing in the Long Term, comes one week after Paramés ended his two-year exile from the world of fund management.
This saw Paramés announce plans to develop his own investment boutique following the expiration of his two-year non-compete clause, which has been in place since he departed Bestinver in September 2014.
Speaking at the presentation, Paramés offered no further details on the venture apart from stating it would be a Spanish-domiciled asset manager and he has a chosen a name for company, which, again he declined to share.
Paramés did state that if the regulatory approvals for the new venture are delayed in some way then he may move back into the fund management industry temporarily on an adviser basis.
Also during the discussion, Paramés declined to respond to questions regarding azValor – the boutique formed by his former Bestinver colleagues. Many Spanish selectors had anticipated Paramés would have joined them once he was able to return to the industry.
In addition, Paramés could not be drawn on any comments regarding his time at his former employer and said the performance of the funds during his tenure were based on team efforts, not just his own.
Paramés said, however, he had attempted to leave Bestinver on better terms but negotiations had not progressed successfully. ‘We tried to negotiate my exit for 15 months but we never reached an agreement.’
‘My exit may have been a bit brisk, I offered a transition period as long as it was needed but Bestinver turned it down. At the end, it worked well as my team remained longer and the portfolio was robust.'
Away from his own experience, Paramés did offer a comment on the current market. He was critical of the stimulus efforts currently on offer in developed economies and questioned central bank logic in persisting.
‘I can’t see that policy getting us anywhere. You can get out of debt by getting yourself more indebted. It doesn’t make sense and erodes the value of money via inflation. Investors should be aware of debt issued by such issuers. The best countermeasure is holding real asset, stocks in solid companies that will be here in the coming years.’