Toronto-based Front Street Capital closed Front Street Special Opportunities Canadian Fund Ltd. to new purchases, effective March 31. The firm says the fund has reached its capacity in terms of the amount of money that can be effectively managed while maintaining its investment objectives and strategies. The closure applies to A-, B- and F-class shares. Investors who have existing pre-authorized purchase plans will continue to be eligible to purchase new shares. The firm says it may re-open the fund to new purchases at its discretion. Front Street has also announced an April 27 shareholder meeting to vote on the proposed merger of Front Street Long/Short Income Fund and Front Street Long/Short Income Fund II. Under the proposed merger, the two portfolios would be combined and unitholders of the FSLS II fund would receive units of the FSLS I fund on a tax-deferred rollover basis in exchange for their units of the FSLS II fund (based on the value of both funds on the date of the merger). The firm says merging the funds would bring combined assets up to $220 million and lower operating costs per unit. If approved, the merger will take place May 31, 2006.