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Komfie Manalo, Opalesque Asia:

A survey by the International Organization of Securities Commissions (IOSCO) has found there is no significant liquidity mismatch in hedge funds under "normal" market conditions. This is one of the findings in the Third IOSCO Hedge Fund Survey that looks at efforts by regulators to better understand the hedge fund industry.

The survey also found that hedge funds seem aware of the market liquidity of their portfolio positions, and they can generally make use of suspensions and gating to manage investor redemptions.

The survey involved data from 1,486 qualifying funds, managing nearly $2.6tln in assets, up 34% from the previous study in 2012.

The hedge funds attributed the increase in their assets to changes in asset values, net inflows and fund structures. Some of this growth also reflects more widespread and accurate reporting across participating jurisdictions.

Other key findings of the study:

• The hedge fund industry is largely concentrated in the United State of America, whilst the Cayman Islands continue to be the tax domicile of choice;
• Hedge funds remain mostly US dollar based and predominantly invested in North American assets;
• The use of equity-based strategies remains the most popular amongst hedge funds;
• Financial leverage is used by hedge funds across all jurisdictions, except in Japan;
• Comparisons of synthetic an......................

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