Cayman-based Melchior European Fund from Dalton Strategic Partnership (DSP) has closed to new and exiting investors following a period of strong inflows.
Managed by Leonard Charlton the $100m Melchior European Fund is a long short equity fund. Since launch in 2006, the fund has delivered a return of +54.19%. According to DSP the return has been achieved with an annualised volatility of 6.48%.
Commenting on the closure, 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."
The closure took effect from 1st October and follows the announcement in July 2011 of the closure of the UCITs III version of the fund, Melchior Selected Trust European Absolute Return Fund.
Dalton Strategic Partnership (DSP) is a global investment management firm founded in 2002 by Andrew Dalton and a number of former colleagues from Mercury Asset Management/Merrill Lynch Investment Managers. Assets under management are £2.45bn as at 30th June 2011. DSP aims to achieve absolute returns and the managers use short selling strategies in their hedge funds and construct specialist, long-only equity portfolios.
DSP is authorized and regulated by the Financial Services Authority. Dalton Capital (Hong Kong) Limited is authorized and regulated by the Securities and Futures Commission in Hong Kong. These are both owned by Dalton Capital (Guernsey) Limited which is regulated by the Guernsey Financial Services Commission.
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