BNY Mellon Investment Management is closing its multimanager and hedge funds-of-funds business EACM Advisors, confirmed BNY spokesman Stan Neve.
EACM managed $3.9 billion in long-only and hedge funds-of-funds strategies. EACM's $2.1 billion in hedge funds of funds will be closed to new investors and existing capital will be returned to investors as investments are redeemed. The $396 million Dreyfus Select Managers Long/Short mutual fund, for which EACM is the portfolio allocation manager, will be liquidated on or around Nov. 30 as part of the move.
The remaining $1.8 billion managed by EACM are in two Dreyfus funds: Dreyfus Select Managers' small-cap value and small-cap growth funds. BNY Mellon Investment Management will continue to manage these funds. Dreyfus is a BNY Mellon affiliate.
Des Mac Intyre, CEO of U.S. asset management at BNY Mellon IM, attributed in a news release the closing of the business to a diminished "overall demand for fund-of-hedge-funds strategies."
"Following a market evaluation, we no longer see the fund-of-hedge-funds category as a stand-alone offer within our U.S. asset management portfolio given the integrated capabilities we already have elsewhere within the business," Mr. Mac Intyre added.
BNY Mellon IM had $1.8 trillion in assets under management as of June 30.
