Majedie soft-closes outperforming Tortoise fund

Majedie Asset Management has closed its Tortoise hedge fund to new investors as assets approach the £350m mark.

The fund, managed by Matthew Smith and Chris Reid, is closing in order to protect existing clients, having reached its targeted £250m in assets since launch in January 2009.

Existing investors will be able to add to their mandates on request, while any outflows will be recycled to new investors "as appropriate", the company said.

Majedie said the Tortoise fund has returned 88.1% since inception, compared with a 2.3% rise in the FTSE All Share and a 2.6% rise in the Dow Jones CS Long/Short (GBP) index.

The fund returned 10.8% in 2011, a year in which the Dow long/short index lost 7.8%, Majedie added.

The offering is a favourite of Cazenove multi-managers Marcus Brookes and Robin McDonald, whose Diversity and Diversity Tactical funds hold around 5% and 4% of their respective portfolios in the vehicle.

Rob Harris, managing director of Majedie, said the fund is now £300m in size, with a further £50m in notified assets yet to be invested.

He said the boutique has no plans for another long/short vehicle, preferring instead to focus on its long-only range for the time being.

"We have always maintained that Tortoise fund capacity is both precious and finite - and have stuck firmly to our original capacity limit. Size is the unspoken, structural impediment to making money. Today we are again demonstrating our commitment to protecting the size advantage for our clients," said Harris.