The Royal Bank of Canada has closed its award-winning event-driven hedge fund to new investors.
RBC Global Asset Management’s PH&N Absolute Return Fund stopped taking on new clients on Friday, The New York Times reports. The eight-year-old fund has enjoyed annualized returns in excess of 16% since inception and was named “Opportunistic Hedge Fund of the Year” at last year’s Canadian Investment Awards.
“After thorough consideration, we made the decision to cap the fund in the interest of our existing clients,” Hanif Mamdani, head of alternatives at RBC, told the Times. “The fund has been very successful in achieving its investment objectives and has therefore enjoyed rapid growth in assets. As a result, we believe it is prudent to take a period of time to accommodate the recent growth in assets under management.”
The PH&N fund manages US$675 million.