Wed, Mar 4, 2015
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. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  2. Investing - Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched, Myriad hedge fund sold bulk of its Alibaba stake last year[more]

    Seth Klarman of Baupost outlines his investment process as major stock market indices are stretched From Valuewalk.com: As hedge fund manager Seth Klarman, leader of the $28 billion Baupost Group, reviews 2014 performance and considers investors gained near 7 percent on the year, he cons

  3. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  4. Opalesque Exclusive: SEC’s Mark J. Flannery warns hedge funds against valuation misconduct[more]

    Komfie Manalo, Opalesque Asia: Securities and Exchange Commission chief economist and director of Division of Economic and Risk Analysis (DERA) Mark J. Flannery has warned of the risks posed by market misconduct, particularly in the true valuation of assets by hedge fund managers. In his

  5. Dymon Asia's $3bn macro hedge fund lost 10.45% in January[more]

    From Reuters.com: Dymon Asia's $3.1 billion macro hedge fund lost 10.45 percent in January, performance data seen by Reuters showed, a month where many peers lost heavily after a surprise rise in the Swiss franc. Singapore-based Dymon, set up by Danny Yong, a former founding partner and chie