Dreyfus and Bear Stearns Asset Management are to team up to launch two new small-cap funds, according to a Securities and Exchange Commission filing. Dreyfus is to unveil small-cap value and growth funds subadvised by Bear Stearns. The move comes as many small-cap offerings have closed amid capacity constraints.
The trend has hit both Bear Stearns and Dreyfus. Bear Stearns recently closed its small-cap growth fund (www.fundaction.com, 7/31). An official has also told FA that Mellon Institutional Funds is set to close its $462 million Boston Company Small Cap Value Fund (www.fundaction.com, 8/4).
Bear Stearns has also been looking to subadvise more funds carried by other shops (www.fundaction.com, 9/23/2005).
Bear Stearns and Dreyfus spokespeople did not return calls.