Mon, May 28, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge funds should keep watch on changing regulatory environment

Thursday, February 09, 2012

amb
Barbara Wall
From Komfie Manalo, Opalesque Asia:

UCITS or Undertakings for Collective Investment in Transferable Securities funds are becoming more popular amongst hedge fund managers who line up to launch under the platform but many of them miss their mark because of the changing regulatory environment, said research firm Cerulli Associates. While fund managers struggle to break out from the pack and offer complex, high alpha products, regulators and fund distributors are looking for simplicity and straight-forward strategies, the study added.

Cerulli Associates’ director Barbara Wall commented, "It is unlikely UCITS overseers will allow the brand to be compromised in any way. While some managers have successfully circumvented the shorting ban, their interests may be better served by looking to strategies other than shorting within the complex UCITS structure to secure returns."

Wall advised hedge fund managers keep their eye on the ever changing regulatory machine. One of the adjustments managers will have to consider is the abandoning of direct short selling, which has been widely criticized as counterproductive.

As well as focusing on strategies that side-step the shorting ban, critics are also focusing on the use of other derivatives - primarily synthetic exchange-traded funds (ETFs) in alternative UCITS. Cerulli noted that the latest ETF sales figures released during the 20......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Hedge funds hike Smurfit Kappa positions amid takeover deal hopes, Hedge fund IBV Capital digs deep to unlock long-term value in a competitive market, Eisman of 'The Big Short' fame recommends shorting Deutsche Bank[more]

    Hedge funds hike Smurfit Kappa positions amid takeover deal hopes From Irishtimes.com: Two US hedge funds, Davidson Kempner and York Capital, have accumulated a combined 4.74 per cent interest in cardboard box maker Smurfit Kappa using financial derivatives. It comes as many investors cl

  2. Foundations of hedge fund managers gave big to controversial donor-advised funds[more]

    In the world of philanthropy and tax-deductible charitable giving, the explosion of donor-advised funds has touched off intense debate. Now, there is evidence that the DAF boom is being further fuelled by hedge fund foundation money. Four of the top five foundations that gave the most to large do

  3. Third Point to raise $400 million for SPAC, Farley to run it[more]

    From Reuters.com: Daniel Loeb's hedge fund Third Point LLC plans to raise $400 million for a "blank check" company which will be run by outgoing stock market operator NYSE Group President Thomas Farley, according to a regulatory filing made on Tuesday. The new company, referred to on Wall Stre

  4. Study: For hedge funds, smaller is better[more]

    From Institutionalinvestor.com: The smaller the hedge fund is, the better its performance is likely to be, according to a new study. The study - "Size, Age, and the Performance Life Cycle of Hedge Funds," released April 26 - sought to determine whether a hedge fund's size and age had any effect on i

  5. Hedge fund returns rose in April for first gain since January[more]

    From Bloomberg.com: Bloomberg Hedge Fund Database shows returns flat this year - Currency strategies had the biggest monthly gain at 13% Hedge fund returns increased 0.78 percent in April, reversing two consecutive monthly declines. The swing of 134 basis points was driven by gains in all seven