The company said it decided to close the Melchior European Fund as it felt by limiting the assets under management the manager Leonard Charlton and his team “will retain the ability to take positions in their best stock ideas at the volume required”.
Dalton Strategic Partnership is the appointed sub-investment manager of the fund which was launched in October 2006. The fund is a long/short equity fund and, according to Melchior, has returned 54.19% since its launch with an annualised volatility of 6.48%.
The company’s decision to close the fund follows its decision in July to close the Ucits III version of the fund, the Melchior Selected Trust European Absolute Return Fund.
Magnus Spence, managing partner at DSP, said: “Our main priority is to provide our clients with the best possible risk adjusted returns. We believe that by closing the Melchior European Fund, and thereby limiting the assets under management, Leonard and his team will retain the ability to take positions in their best stock ideas at the volume required.
“Since launch five years ago, the fund has consistently delivered positive returns with low volatility and a low correlation to equities. The decision to hard close the fund has been taken in order to ensure that investment performance is not negatively impacted by further inflows of assets.”