A Sydney small caps manager set up by telco entrepreneur James Spenceley has shut down its only fund after it failed to swell funds under management.
Mhor Asset Management kicked off in August 2016 with the former Vocus chief executive joining forces with former Renaissance Asset Management fund manager Gary Rollo.
At the time, Spenceley said the firm would initially focus on a small caps fund with a "more of a hedge fund product" in the future.
Mhor launched a small caps fund and it returned over 24% p.a. net of fees since inception to May end. Last year, the firm made the fund available through ASX's managed funds settlement service, mFund.
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However, Mhor was unable to grow its funds under management.
It had about $25 million in net assets at the end of last financial year, mostly from retail investors.
The fund was closed last month and capital returned to investors, a Mhor spokesperson said.
Mhor Asset Management also filed to ASIC for its Australian Financial Services Licence to be cancelled.
It charged a 1.5% p.a. management fee plus 15.38% performance fee on the amount by which it exceeded the returns of S&P/ASX Small Ords, according to a PDS from March last year.
Last month, another Sydney small caps manager announced its plans to shut down, sending Zurich Investments in the search of another manager for its $66 million small caps fund.