The unsolved mystery over missing $25 billion Hermès windfall

The former adviser to an Hermès heir has died as a longstanding mystery over the whereabouts of company shares worth some €14 billion ($25 billion) remains unsolved.

Eric Freymond worked for 24 years as a wealth manager to Hermès descendant Nicolas Puech before their relationship soured, leading to a court case in Geneva. The wealthy octogenarian Puech alleged that Freymond had played a role in the disappearance of some 6 million shares in Hermès International SCA that he had inherited.

Eric Freymond worked for 24 years as a wealth manager to Hermès descendant Nicolas Puech (pictured) before their relationship soured, leading to a court case in Geneva.

A decision by an appeals court in Geneva last year found no evidence that Freymond mismanaged Puech’s fortune or that the reclusive, fifth-generation heir was duped over an extensive period during which time at least some of the stock was sold. Freymond denied all allegations of wrongdoing.

Freymond’s lawyer Yannis Sakkas confirmed the death, saying he was “deeply shocked by the terrible news.” Freymond was 67.

The dispute over Puech’s stake in Hermès was one of the most enduring mysteries in the fallout from one of France’s most high-profile corporate battles. A recent twist came from a lawsuit filed in March in Washington, DC, in which Puech was accused of failing to deliver the $US16 billion of Hermès shares as part of a sale agreement. His lawyer said his client was not involved in the deal.

More than a decade ago Bernard Arnault, luxury goods rival and founder of conglomerate LVMH, revealed he had stealthily amassed a stake in Hermès. Descendants controlling Hermès came together and successfully fought the unwelcome advance.

The dispute over Puech’s stake in Hermes was one of the most enduring mysteries in the fallout from one of France’s most high-profile corporate battles.Credit: Bloomberg

The fate of Puech’s shares was never clarified even after Arnault’s 2014 agreement with the Hermès clan to start unwinding his stake. The enigma deepened in 2023, when Puech accused Freymond of mishandling his holdings.

The Hermès clan, which counts more than 100 members, is one of Europe’s richest families. Should Switzerland-based Puech still hold his stake, he would be the single largest investor in the purveyor of Birkin handbags and colourful silk scarves that was founded in 1837.

Freymond was born on June 21, 1958. He studied law at the Université de Genève from 1979 to 1983 before working in banking at Ferrier Lullin & Cie and Vernes Gestion, according to his website. He then created his own company, Semper Gestion in 2001, and later pursued his interest in contemporary art.

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In 2014, he retired from Semper Gestion and, with his wife, Caroline, opened Espace Muraille, an exhibition space in Geneva dedicated to contemporary art, the website states. According to the Geneva court document, he started working for Puech in 1998 until his mandate was cancelled by the heir in 2022.

Bloomberg

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