OMGI GEAR strategy 'will near capacity' at $3bn

Old Mutual Global Investors' Global Equity Absolute Return (GEAR) strategy is nearing its maximum "comfortable" size, according to co-manager Ian Heslop.

He said the fund's managers feel they can run up to roughly $700m more in the vehicle, which has seen significant inflows in recent months, growing more than 200% since the start of the year. "We are comfortable around $3bn. It is just managing the capacity. So for a period of time, it will not be the lead fund OMGI sells in order to make sure we have significant capacity." The $2.3bn fund has held up in the face of increased volatility in recent weeks, with returns of 2.2% over the three months to 11 November, compared to a sector average of 1.3%, according to FE. It is up 25.5% o...