Because the stock market is at a record high, 56 mutual funds have closed themselves to new investors, according to The Associated Press writer Stan Choe.

To compare, Choe notes that 49 made the move in all of 2012, and 53 did in 2011.

Why cut oneself off from more AUM? Choe writes that PMs are becoming more careful in managing their funds.

For example, Choe quotes Morty Schaja, chief executive officer of RiverPark Advisors [profile] as saying “It’s like we’re in the business of selling cars, and all of a sudden, we don’t want to sell any more cars because there’s too much traffic."

Schaja's firm closed its RiverPark Short Term High Yield fund (RPHYX) to new investors in June.

Schaja went on to express to Choe that he was relieved that PMs are actually exercising discretion.

Choe also spoke to S&P Capital IQ's director of ETF and mutual fund research, Todd Rosenbluth, who said that fund companies may find managing the fund too difficult the more assets it takes on.

Choe interviewed Brown Brothers Harriman [profile] partner Jeff Schoenfield, on why the firm closed BBH Core Select to investors last fall. Schoenfield answered Choe by saying the managers are choosy.

To read more, click here. 

Edited by: Casey Quinlan


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