De Fonclare steps away from long/short after fund merger

Jupiter is to rename its Jupiter European Absolute Return fund as it merges with the Jupiter Europa hedge fund.

The hedge fund has received shareholder approval to merge with the Luxembourg-domiciled absolute return vehicle, and will close once the transfer of assets is complete.

The €15m offshore fund will take the Jupiter Europa name, while its investment policy and charging structure have been brought into line with the hedge fund's own in anticipation of investors rolling over shares into the SICAV.

The fund will now charge an AMC of 1.5% and a 15% performance fee, subject to a high watermark.

Stephen Pearson, who ran the hedge fund for almost a decade and has been co-manager of the SICAV since launch in January 2010, will continue to manage the offshore vehicle. Michael Buhl-Nielsen will become deputy manager.

De Fonclare, who previously co-managed the SICAV with Pearson, will now step down from the role.

"The hedge fund and the SICAV shared similar objectives within different legal frameworks. It is hoped this merger will provide investors in both vehicles with improved economies of scale," said Jupiter director Richard Pavry.

"Jupiter Europa will continue to be managed as a bottom-up stockpicking European long/short equity strategy, able to access the full spectrum of European markets with the same management combination in place," said Pearson.