Picton Mahoney Asset Management is to close its Neutral Equity Fund to new investments on or before September 28, 2007.
Picton Mahoney Asset Management is to close its Neutral Equity Fund to new investments on or before September 28, 2007. This decision was prompted by a strong level of capital inflows into the fund and is in keeping with Picton Mahoney’s commitment to providing authentic, nimble hedge fund solutions with limited capacity.
The fund was introduced in December 2005 to offer Canadian investors attractive risk-adjusted returns with low correlation to major stock market indices. Since inception, the fund has delivered on both objectives. As at 31 August 2007, the Picton Mahoney Market Neutral Fund has performed independently of the Canadian market, generating positive monthly performance 95% of the time with a beta of 0.17.
‘In late 2005, we introduced our first hedge fund solutions to help Canadian investors strengthen their investment portfolios. 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,’ says David Picton, President, Chief Investment Officer and Portfolio Manager of Picton Mahoney Asset Management. ‘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 Market Neutral Fund as it nears CAD150 million in sales is evidence of our commitment to our founding principles of authenticity and limited capacity.’
