JP Morgan Asset Management has become the latest high-profile firm to re-open one of its leading long/short equity funds following a substantial drop in assets, Citywire Selector can exclusively reveal.
The JPM Europe Equity Absolute Alpha fund was soft-closed in April 2015 after the fund saw assets swell from €620 million between its launch in December 2013 and February 2015.
It was hard-closed – meaning no new money from either existing or new clients was being accepted – in April 2015 when assets again rocketed, this time reaching €1.01 billion.
However, the size of the fund has fallen back to €437 million according to company data, which has created a viable scenario for investors to once again allocate to the fund.
A spokesperson for JP Morgan Asset Management confirmed JP Morgan Funds – Europe Equity Absolute Alpha Fund had been removed from hard closed status as of 12 January and will re-open to allow for existing and new clients to invest.
‘At the current size there is capacity to manage the fund and access opportunities across the market cap spectrum. The fund had been moved to hard closed status in April 2015,’ the spokesperson said.
This announcement, which was communicated to shareholders this week, follows similar steps taken by BlackRock and Rhenman & Partners, which both ended soft-close measures on top-performing long/short funds over the past month.
The Europe Equity Absolute Alpha fund is overseen by Michael Barakos and Nicholas Horne, who also oversee the larger JPM Europe Equity Plus fund. This remains closed to investors, having been shuttered to new shareholders in October 2014.
On a one-year basis, the JPM Europe Equity Absolute Alpha fund has been flat against the average peer in the Alt Ucits – Long/Short Equity sector. It lost 4.2% in euro terms against a sector return of 4.2%