Sun, Jan 22, 2017
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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised