CQS To Soft-Close Mortgage-Backed Hedge Fund

Jun 16 2011 | 12:03pm ET

CQS will close its mortgage-backed securities hedge fund to new investors when its assets under management hit US$2 billion, the firm said.

London-based CQS told investors in the CQS ABS Fund, which has annualized returns of about 35%, that the soft-close was necessary to "carefully and thoughtfully" manage the fund. The fund, launched five years ago, currently manages US$1.6 billion.

Until that time, inflows will be "managed" on a monthly basis, fund manager Alistair Lumsden wrote.

CQS' flagship Directional Opportunities Fund is already closed to new money. The firm's total assets have almost doubled over the past year-and-a-half; it now manages about US$11 billion.

The closure of the fund, first reported by the Financial Times, was delayed to allow pension funds currently conducting due diligence to get in before the doors close.

"We are fully cognisant of the amount of time investors need to complete their due diligence and we are ensuring with our soft close process that all clients receive adequate notice," Lumsden wrote.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...