If you are already an existing investor in the Contrafund you should be thrilled that the fund is closing, but if you are not an existing investor you might be disappointed. After the 28th, existing investors will still be allowed to add to their account but no new investors will be accepted. The fund has put up a decent track record recently, posting a 22% average annual return over the last three years according to Morningstar, Inc.
Believe it or not, it is easier to manage smaller amounts of money than larger amounts, especially for mutual funds. We should all have such problems. As a fund gets larger from new investors, finding quality stocks to buy in reasonable quantities becomes more difficult. Two things happen. Because of regulations and risk control, mutual funds are limited as to how much of an individual company's shares they can purchase. Also, as the fund gets bigger, "hiding" their purchases so other managers don't get "wind" of what they are buying becomes more difficult. It is somewhat similar to the "elephant trying to tiptoe through the glass store" without anyone noticing.
If a fund doesn't close at some point, their returns will tend to match that of the overall market because they will in fact "own the overall market". An investor might as well buy an Index Fund then and not bother to pay a manager. For the existing Contrafund investors, this means that management can focus on those securities they feel will offer the highest return and still be able to take meaningful enough positions in those holdings without having to over diversify. If you are a potential investor, check with your Financial Advisor first, and if appropriate, open a new account before 4/28 because the door slams shut then!