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Fund Times

Fund Times: Openings, Closings, & Manager Changes

Gabelli, Janus, Nvest, John Hancock, E*Trade, and others.

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Enterprise Group of Funds has recruited a well-known value manager to run a fund focusing on corporate combinations, while Janus Mercury (JAMRX) manager Warren Lammert bowed out of a subadvisory gig.

Fund manager Mario Gabelli's deep-value investing style is renowned for leading him into companies with stock prices so low that somebody ends up buying them out. Now Gabelli will run a fund whose stated purpose is to find potential takeover targets. Gabelli, who runs a passel of funds through his own Gabelli Asset Management (GBL) firm, will run the recently available Enterprise Mergers and Acquisitions fund. Gabelli will use a third of the new fund's assets to pick companies of all sizes that he thinks have a chance of being snapped up by acquirers in the next year to a year-and-a-half. He will play the risk-arbitrage game with the rest of the portfolio's assets. This means Gabelli will buy the stock of merger targets and even short the shares of their acquirers in an effort to take advantage of the difference between the price of a buyout candidate and the price of the deal on closing day. 

Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.