Fund Openings, Closings, Manager Moves: AIM to Close Mid-Cap Fund

AIM Funds said Thursday it would close its (AMCOX Quote)Mid-Cap Opportunities fund when it hits $750 million in assets, which could happen in a hurry. The fund is performing well and already has between $500 and $600 million, according to the company.

The fund, which focuses on small- or mid-cap growth stocks, is up 159% over the past year, which beats more than 80% of its peers according to Morningstar.

But the team-managed fund, which launched at the end of 1998, has taken a different route to that outsized return. The fund applies a long/short strategy, holding stocks with positive earnings surprises and selling short those stocks that have earnings disappointments. Short-selling, or shorting, is a bet that a stock's price will fall. It involves selling borrowed stock in hopes of buying it at a lower price later on. The fund is allowed to short up to 25% of its portfolio at any given time. ...