Old Mutual Global Investors (OMGI) is to soft close Luke Kerr's UK Dynamic Equity fund as the capacity-contained strategy rises above £500m.
The now £540m fund - which takes long and short positions in the UK mid and small cap space - opened in 2009 and has been run by Mr Kerr since launch.
According to FE Analytics, the fund's assets have grown substantially in the last 9 months through both performance and inflows.
The fund is first quartile over all time periods up to five year and returned 34.3 per cent in the last year versus 23.3 per cent for the IA UK All Companies sector. Its FTSE 250 ex-Investment Trust benchmark returned 20.5 per cent.
While the fund does short stocks within its universe the strategy has a long bias, currently holding 50 long positions to two short.
OMGI said the fund will now be soft-closed until further notice.
Managing director Warren Tonkinson said: "The Old Mutual UK Dynamic Equity fund has had a limited capacity, via a fixed number of shares in issue, since inception, so that it can be maintained as a highly focused best ideas portfolio.
"We believe this is in the best interest for all of the fund’s investors."
Last year, OMGI launched a UK Specialist Equity strategy to be run by Mr Kerr and Tim Service. The fund will also hold long and short positions in the FTSE 250 space, but with an absolute return benchmark and more focus on short positions.
