OMGI extends capacity of $3bn GEAR fund after change to dealing dates

Old Mutual Global Investors (OMGI) has changed the dealing frequency on its $3bn Global Equity Absolute Return (GEAR) fund, extending its capacity beyond a previously suggested limit.

Manager Ian Heslop (pictured) had said the long/short fund, which saw its assets grow by more than 200% in 2014, would be "nearing capacity" once assets surpassed $3bn. However, Heslop, also the group's head of global equities, now sees capacity significantly in excess of the fund's current $3.3bn AUM. This follows a move last September from weekly to twice-weekly dealing on the portfolio.   "We are very aware of how capacity impacts on the alpha and Sharpe ratio of the fund, but we are comfortable that we can have significantly north of the amount of assets we are running now," the m...