Picton Mahoney Asset Management closes hedge fund
Canadian portfolio management boutique Picton Mahoney Asset Management has announced that the Picton Mahoney Long Short Equity Fund will be closed to new investments on or before November 30 as assets under management near CAD150m.
The firm says the decision has been made in the light of strong capital inflows into the fund and is in keeping with its commitment to providing authentic, nimble hedge fund solutions with limited capacity. It follows the capping of Picton Mahoney's market neutral offering in September.
The Long Short Equity Fund was launched in December 2005 to offer Canadian investors attractive risk-adjusted returns with less correlation to major stock market indices. Since its establishment, the firm says, the fund has delivered on both objectives, generating positive monthly performance 95 per cent of the time with a beta of 0.55 to the Canadian market as of October 31.
'In late 2005, we introduced our first hedge fund solutions to help Canadian investors strengthen their investment portfolios,' says David Picton, Picton Mahoney's president, chief investment officer and portfolio manager. 'We felt that there weren't enough authentic hedge funds in Canada that focused on generating solid investment results with low correlation to the performance of the overall stock market.
'At that time, we promised our clients we would monitor the capacity of our funds to ensure they remained nimble enough for us to meet their investment objectives. Our decision to cap the Long Short Fund as it nears CAD150m is evidence of our commitment to our principles of authenticity and limited capacity.'
Picton Mahoney manages more than CAD4.7bn in assets for investors through hedge funds, institutional long-only mandates and retail mutual fund sub-advisory services. The firm's investment focus is earnings momentum and growth strategies with expertise in Canadian, US and global equities.
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