Odey Asset Management is to soft-close James Hanbury's top-performing £629m UK Absolute Return fund next week.
IFAonline's sister title, Investment Week, can reveal the fund, the best performing product in the IMA Targeted Absolute Return sector over both one and three years, will levy a 4% initial charge on all investments into the fund as of 10 July.
Odey - founded by hedge fund star Crispin Odey (pictured) - said the move has been made to deter new investment and protect performance for its existing unitholders.
"As with all our products we manage our strategy to capacity. Protecting performance is our prime consideration rather than running a large fund," said a spokesperson for the group.
The fund takes a variety of long and short equity positions, predominately in the UK but also overseas, in order to achieve its target of delivering positive absolute return over a 12 month period.
Active positions which have helped drive performance in 2013 include a sizeable position in Sports Direct, up 46% year-to-date.
The portfolio's largest long positions also include a holding in Warren Buffett's insurance company Berkshire Hathaway.
Hanbury has delievered consistently strong performance since the fund's launch in May 2009. The fund has returned 97.9% in the three years to 28 June, according to Morningstar, well ahead of the IMA Targeted Absolute Return sector average of 13%.
On a one year view the fund is up 42.4%, ahead of the sector average return of 6.4%.
Several high profile mandates have closed to new business since the start of 2013, as intermediary and wealth manager opt to put client cash into an increasingly concentrated number of tried-and-tested vehicles.
Both Aberdeen and First State moved to soft close a number of emerging market offerings, while the likes of Troy and Cazenove have moved to stem flows into some of their flagship UK mandates.
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