Capita is to close the CF Eclectica Agriculture fund and the CF Eclectica Absolute Macro fund following the announcement last week that Eclectica Asset Management is shutting up shop.
Capita says due to “the nature of the investment strategies” of the Absolute Macro fund and “the size of the fund and specific investment objective” of the Agriculture fund the firm was unable to find “a suitable investment manager” to replace Eclectica.
The onshore Ucits funds will be closed to investors on 22 November and any holdings remaining on 24 November will be removed. The fund will bear the audit and legal costs incurred.
Eclectica was founded in 2005 by Hugh Hendry, Tim Arengo-Jones and George Lee who had worked together at Odey Asset Management. Last week the firm announced it was closing as it “no longer considers [the] business to be viable long term”, with the flagship Eclectica fund being wound up having lost 9.4 per cent this year.
The CF Eclectica Absolute Macro fund was launched in December 2009 and had $51.6m in assets under management in July. Manager Hendry admitted July was a tough month for the fund, which lost 4 per cent due to its fixed income exposure and bet on the US dollar against the Japanese yen.
Run by George Lee, the CF Eclectica Agriculture fund had just $23m in assets under management in July, having launched in 2007, although it was up 1 per cent in July on the back of strong performance from fertiliser companies and machinery manufacturers.