BlackRock, Gottex Eye Wind Downs For Close-End Funds

Jun 1 2011 | 8:14am ET

A pair of closed-end funds employing hedge fund strategies are on their last legs.Both BlackRock and Gottex Fund Management have proposed shuttering the funds, which have both traded at a consistent discount to net asset value.

BlackRock has proposed to wind up its BlackRock Absolute Equity fund, Morningstar reports. The fund debuted in 2008 and raised more than £160 million. But the fund's value has slumped by more than 20% and all three share classes currently trade at a roughly 10% discount.

Gottex's closed-end offering, Gottex Market Neutral Trust, has an even bigger problem, with a discount nearing 40%. So, like BlackRock, Gottex is offering to shutter the four-year-old fund and return the money to investors.


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