Following a period of strong inflows, the Directors of the Melchior European Fund (MEF) have taken the decision to hard close the fund, which is managed by Leonard Charlton. The closure took effect from 1 October.
MEF, a Cayman Island-domiciled European equity long short fund for which Dalton Strategic Partnership (DSP) is the sub-investment manager, was launched in October 2006 since when it has delivered a return of +54.19% vs. the MSCI Pan European index return of -19.99%. This has been achieved with an annualised volatility of only 6.48%
The closure of the Melchior European Fund follows the recent announcement in July 2011 of the closure of the UCITs III version of the fund, Melchior Selected Trust European Absolute Return Fund.
Magnus Spence, Managing Partner at DSP, says: "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."
