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Charles “Chuck” de Lardemelle departs IVA

From MFO (link)

The most consequential, and intriguing, is the departure of Charles “Chuck” de Lardemelle from International Value Advisors, the advisor for IVA Worldwide and IVA International. It’s consequential because Mr. de Lardemelle was one of the funds’ two managers, was IVA’s chief investment officer, cofounder, and had been managing the funds since inception. It’s intriguing because we have no idea of why Mr. de Lardemelle left and nobody’s talking.  As folks on the MFO Discussion board point out, the notice of his departure was pretty curt:

Charles de Lardemelle is no longer a portfolio manager of the Funds. All references to Mr. de Lardemelle are hereby removed.

In the case of amicable separations and retirements, there’s usually some … well, amicable words. Here, there’s the sound of an offended firm spitting.

I am extremely happy I severed my connections with IVA earlier this year. I think IVA will go down in MF history as a failed endeavor. Been a bad decade for value investors, especially ones keeping 30-35% in cash, waiting, waiting, waiting .... and never able to do anything. Its record is poor even within its own category. I can't think of a single fund whose top holding is BRK that's worth a darn.

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Frequent Contributor

Re: Charles “Chuck” de Lardemelle departs IVA

Here's the announcement on IVA's web site:

https://www.ivafunds.com/documents/news/IVA%20Portfolio%20Manager%20Update%20July%202020.pdf

Actually, MFO has misstated the announcement. It reads:

IVA Portfolio Manager Update

As of July 13, 2020, Chuck de Lardemelle has departed IVA. Effective immediately, all IVA products will be solely managed by Charles de Vaulx, Chief Investment Officer and Portfolio Manager. IVA believes that, during these challenging times, Charles’ solitary voice directing the investment team is in the best interest of our shareholders. The investment objectives, investment strategies and management philosophy remain unchanged.

Chuck was one of the Founding Partners of IVA, and his contributions and service to IVA and our clients are greatly appreciated. We wish him success in any future endeavors.

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Re: Charles “Chuck” de Lardemelle departs IVA

https://www.barrons.com/articles/why-did-iva-funds-co-cio-leave-10-months-after-accepting-the-job-51...

".....managers eventually retire, get poached by other fund companies, or leave to start their own firms.....The question is which of the above three reasons explain Charles ”Chuck” de Lardemelle’s sudden departure on July 13  from IVA Funds.....While its possible de Lardemelle was fired, that’s highly unlikely as he was just promoted to co-CIO of IVA last September , and as a major partner in a boutique fund shop, firing him wouldn’t be easy.....It seems doubtful de Lardemelle retired, as fund companies generally prepare shareholders well in advance for such events. And why start his own firm when he was already a founder of IVA? It is possible, though, as there could have been some sort of blowup or creative difference with de Vaulx that caused their professional partnership to break up.....A more likely scenario is de Lardemelle was poached.....And now that nontransparent actively managed ETFs are being launched , de Lardemelle seems an excellent candidate to run one. It’s even possible he is being rehired by First Eagle to run one of its larger funds....."

YBB
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Explorer ○

Re: Charles “Chuck” de Lardemelle departs IVA

Actually, the MFO information came from the July 13 SEC filing which was filed the day he left:

https://www.sec.gov/Archives/edgar/data/1437921/000094937720000245/iva_497.htm

497 1 iva_497.htm
IVA FIDUCIARY TRUST

IVA Worldwide Fund
IVA International Fund

Supplement dated July 13, 2020 to the
Summary Prospectuses, Prospectus and Statement of Additional Information,
each dated January 31, 2020 for the IVA Worldwide Fund and IVA International Fund
(together, the “Funds”)

This supplement updates information in the Summary Prospectuses, Prospectus and Statement of Additional Information of the IVA Fiduciary Trust (the “Trust”), each dated January 31, 2020. You may obtain copies of the Summary Prospectuses, Prospectus and Statement of Additional Information free of charge, upon request, by calling the toll-free number (866) 941-4482 or by visiting the Trust’s website at www.ivafunds.com.

Effective July 13, 2020, Charles de Lardemelle is no longer a portfolio manager of the Funds. All references to Mr. de Lardemelle are hereby removed from the Summary Prospectuses, Prospectus and Statement of Additional Information.

Charles de Vaulx remains primarily responsible for the day-to-day management of the Funds and serves as Chief Investment Officer of the Adviser.

Here is the link to the MFO discussion:

https://www.mutualfundobserver.com/discuss/discussion/56527/charles-de-lardemelle-is-leaving-iva-fid...

 

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Re: Charles “Chuck” de Lardemelle departs IVA


@MrBilboBaggins wrote:

Actually, the MFO information came from the July 13 SEC filing which was filed the day he left:


But the MFO newsletter was sent yesterday 8/1. So I think they misstated IVA’s communications; obviously they didn’t check IVA’s own web site.

Whatever happened, it was clearly a surprise to IVA.

Regardless, it was one of my less successful investments and I’m happy to be out of it.

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Explorer ○

Re: Charles “Chuck” de Lardemelle departs IVA

It is very possible the IVA acknowledgement was issued after the 13th.  There is link from IVA website for De Lardemlle when you click on it comes up with an error screen which I included above.  Regardless, the SEC filing was issued on the morning of the 13th when he left at the close of business on the 13th. 

I am pretty sure that the SEC filing preceded the news release issued from IVA.    The SEC filing above was accepted at 9:31 AM on July 13.

The IVA news release has no date on it.  Incidentally, when I read the initial MFO post of his departure (conversations covered the period of July 13-14), I went to the IVA website for "news".  There was no announcement indicated when I checked their website. It would look pretty unprofessional not to alert investors of his departure.

Bottom line, his departure was abrupt however you want to look at it.

 

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