I don't see this fund closing "soon," but it may close "eventually." In my opinion our hero is advertising in order to attract new money so that he can add to certain positions after others do some profit taking and find and short stocks that he thinks are due for a decline. For example if he thinks financials are going lower, he shorts them. If he thinks PBR is going up more he waits for a pullback and using new cash, strengthens a position. Also more than a few of his investors lose heart and hope or decide they want to protect profits. I know someone who pulled the plug on a couple hundred grand because he got worried about government meddling in the oil markets and wanted to protect gains. If and when this market begins to stabilize and recover Ken might close the fund to new investors for reasons that others have cited. Then again, he might also increase fees, something most of us would probably swallow without complaint.
The merger refers to the now widely read article on cnn.money.com where it said that CGM Capital Development (which has been closed to new investors for decades) will merge with CGM Focus, but it didn't say when. Or at least that is where I read about it. There may be other articles, but I haven't seen them. The sooner the better as far as I a concerned.