that easily gather assets are not easy to create. Therefore many fund companies may be reluctant to close a fast-growing fund even when that fund's manager is groaning under the work of investing the new cash.
One way to lift the pressure of a the back of a manager of a too-popular fund is to change the rules. The is what OppenheimerFunds has done for the just reopened Oppenheimer Enterprise Fund. Not only did the firm reopen the fund, it also lifted a $5,000 monthly cap on additional investments by existing shareholders. The load fund was reopened on September 15 and had been closed since July 1, 1999.
The firm was able to reopen the fund after its Board of Trustees voted to expand the fund's mandate in June. The fund had been limited to investing in only small cap stocks, it will now be able to invest across all market caps.
"My strategy in managing the fund is to look for the stocks of companies that offer the most growth potential," said Portfolio Manager David Hyun. "These include not only companies that are new or developing new products, but also companies that are expanding into new markets with existing products. Being able to invest across all market capitalizations should enable me to lessen some of the volatility that comes with investing in newer, less-established growth companies."
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