Polar Absolute Return Fund

Polar Capital is closing its £292m UK Absolute Equity fund after manager Guy Rushton fell ill and has been unable to recover sufficiently to return to his post full-time.

In a letter to investors, Polar Capital have said the decision to terminate the fund had been ‘prompted by the poor health of the individual fund manager’.

‘Over the past few weeks and due to the unprecedented market turmoil caused by the Covid-19 pandemic, Polar’s risk team and central dealing desk has, at the request and with the consent of the fund manager, stepped in to provide assistance and support to the fund manager as he decided to reduce the fund’s risk,’ said Polar Capital in the letter

‘Regrettably it has been concluded that the short-term respite has not been sufficient to enable a realistic full-time return of the fund manager to his position.’

Whilst we are disappointed that the action to close the fund needed to be taken by Polar, there are clear reasons why that is so and the health of the fund manager should be a priority for the employer. We believe that this is a sensible approach to take rather than risk investor’s capital in a strategy that the company no longer feel comfortable managing. We are researching for a replacement or substitute vehicle within our wider portfolios that fits within our overall risk profile so that when the fund proceeds are returned to the various investor accounts we can reinvest accordingly. For now, we are regrettably unable to add any further information to that which we have noted from the fund house in this update.

Polar Capital’s statement can be found here: https://www.polarcapital.co.uk/static/documents/Notice_of_Termination_UK_Absolute_Equity_140420.pdf

As always, if you have any queries or concerns that you feel have not been answered here, we are always available to speak with you by telephone, email or video meeting.

The Fiducia investment team