Fri, Jul 31, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

The stifling of hedge fund creativity through regulation and lack of assets

Thursday, December 27, 2012

Benedicte Gravrand, Opalesque Geneva:

Regulation and lack of assets are chocking the hedge fund industry and for this reason, it may never be what it was back in the 90s, participants at the recent Opalesque Geneva Roundtable said. If you compare a genius investment manager to Picasso, it could be said that one the one hand, he has no paint, brushes or canvas to work on (read: assets), and on the other hand, he does have all that, but he has to comply with unsuitable conditions (i.e. regulation, compliance, etc.) Not easy being a hedge fund Picasso these days. But genius is resourceful. And there are some places where one can get paints and brushes without having to climb up a hight steep mountain.

It is difficult for new fund managers to get started, and this is a threat to the alternative investment space going forward, said Ian Hamilton, founder of the IDS Group (IDS develops bespoke platforms and plug and play opportunities to help new managers set up and grow).

The cost of regulation has become totally unbearable, agreed Jean Keller, who heads a start-up called Argos Fund Managers. He reckons the regulatory costs to start a new business in Switzerland that is regulated, offers UCITS funds and is trading, will probably be CHF2m ($2.18m). And those mounting costs have already taken a toll on the industry’s creativity.

"It will affect investors as well because this is ......................

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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge funds, seeing opportunity, invest in struggling hotels in Puerto Rico[more]

    From NYTimes.com: Puerto Rico’s tourism industry has fallen victim to the island’s struggling economy, hit by one misfortune after another. In March, the San Juan Beach Hotel filed for bankruptcy. This week, the Condado Plaza Hilton was forced to close its casino. But nearly two thousand miles away,

  3. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

 

banner