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BlackRock re-shuts AAA-rated duo’s L/S fund after assets surge

BlackRock re-shuts AAA-rated duo’s L/S fund after assets surge

BlackRock has moved to once again hard-close its leading European equity long/short fund after assets swelled by €400 million in just two months after investment restrictions were lifted.

According to a shareholder note seen by Citywire Selector dated January 27, BlackRock has once again imposed limitations on the BSF European Opportunities Extension fund.

This strategy, which is overseen by Citywire AAA-rated David Tovey, had been hard-closed for two and a half years before being reopened to investors on December 1.

Assets in the fund had dropped to €609 million at the end of November 2016, which had created extra capacity for investors. However, according to company figures for January 31 2017, the fund now sits at €1.06 billion.

In the note, BlackRock said: ‘The investment strategy of the fund is capacity constrained and the fund is now closed to any new subscriptions.

‘In the future, we may deem it appropriate to re-open the fund for further subscriptions, either on a temporary basis for example for one or two dealing days if a limited amount of capacity becomes available or on a permanent basis, which would mean that significant capacity becomes available enabling normal dealing procedures to resume until further notice.’

BlackRock was approached for further comment but had not responded at the time of publication.

The fund remains the top-performing long/short equity fund tracked by Citywire on a three-year, total return basis. It has returned 70% in euro terms over the 36 months to the end of December 2016 against an average manager return of 3.7%.

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