BNY Mellon Investment Management is to wind down EACM Advisors (EACM), its multi-manager and fund of hedge funds investment manager, as a standalone business.
EACM managed USD3.9 billion in a combination of long-only and fund of hedge funds strategies. EACM’s fund of hedge funds strategies (USD2.1 billion) will be closed to new investors and existing capital returned to investors in an orderly manner as investments are able to be redeemed. As part of this change, management recommended and the Dreyfus Fund Board approved the liquidation of Dreyfus Select Managers Long/Short mutual fund, for which EACM is the portfolio allocation manager. It is currently expected that the liquidation of the Fund would occur on or about 30 November 2018.
Dreyfus’ two long-only mutual funds for which EACM serves as portfolio allocation manager – Dreyfus Select Managers Small Cap Value Fund and Dreyfus Select Managers Small Cap Growth Fund – with combined assets of USD1.8 billion, will continue to be managed within BNY Mellon Investment Management.
Des MacIntyre (pictured), CEO of US Asset Management at BNY Mellon Investment Management and a member of EACM’s Board of Directors, will assume the role of EACM Board Chairman. Michael Germano, currently Managing Director of BNY Mellon Asset Management North America, will oversee the wind down of EACM during this period.
“Despite EACM’s long track record, the overall demand for fund of hedge funds strategies has diminished. Following a market evaluation, we no longer see the fund of hedge funds category as a standalone offer within our US asset management portfolio given the integrated capabilities we already have elsewhere within the business,” says MacIntyre. “Retaining EACM’s institutional quality manager selection and asset allocation expertise in long-only strategies will complement the existing specialist solutions provided from our other investment managers.”
