Threadneedle has closed its European Smaller Companies Crescendo hedge fund and launched a new absolute return portfolio focused on the region.
The group has closed the hedge fund as part of a revamp of its range, after launching the European Smaller Companies Absolute Alpha fund for manager Philip Dicken.
Dicken, in charge of the company's £632m Pan European Smaller Companies fund, will have flexibility to take both long and short positions in stocks across the region in the new fund.
Dicken, who also ran the Crescendo hedge fund, says the time is right for such a strategy following recent events in Europe.
"With the dislocations of the past few years still fresh in investors' minds, the opportunity to add value through fundamental and valuation analysis with high conviction long and short positions is considerable," he says.
Dicken has outperformed in the long-only space over the three years to 7 February, returning 33.3% to investors compared to the IMA European Smaller Companies sector average of 21.1%, according to Morningstar.
Last year Threadeneedle launched a UK Absolute Alpha fund for Mark Westwood and Chris Kinder, replacing its UK Crescendo fund.
The new fund, domiciled in Luxembourg, has an AMC of 1.5% and a 20% performance fee on any returns achieved above 3-month Euro LIBOR.
Caring for children and elderly relatives
Similar to June 2007
Square Mile’s series of informal interviews
Fine reduced to £60,000
Two roles created