Wed, May 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Comprehensive Study of Alternative UCITS Funds by PerTrac Finds Long/short Equity Most Popular Strategy

Monday, January 23, 2012
Opalesque Industry Update - Long/short equity is the most popular strategy pursued by Alternative UCITS (Undertakings for Collective Investment in Transferable Securities) funds, and overall, funds invested in emerging markets have posted the best performance from January 2002 through October 2011, according to PerTrac, the world’s leading provider of analytics, reporting and communications software for investment professionals. The 30-page report titled, “The Coming of Age of Alternative UCITS Funds,” also indicates that smaller funds outperform larger ones based on a comparison of equal-weighted and asset-weighted cumulative return of PerTrac’s Alternative UCITS Fund Index.

Released today, the PerTrac report is the most comprehensive study of Alternative UCITS funds conducted to date. Alternative UCITS funds are pan-European investment vehicles that pursue hedge fund-like strategies, but are limited in leverage and the range of illiquid assets into which they can invest.

The PerTrac study found that over one quarter of the 1,210 Alternative UCITS funds in its universe pursued long/short equity strategies. There was a virtual tie for the second most popular strategy among global macro, cta/managed futures and multi-strategy, with each strategy accounting for over 11% of the funds. Nearly 11% of the funds followed a fixed-income approach. A little more than 80% of Alternative UCITS funds are domiciled in three countries; Luxembourg (49.92%), Ireland (18.84%), and France (11.90%).

In terms of performance, PerTrac’s Alternative UCITS Fund Index posted a cumulative 62% return from January 2002 to October 2011 on an equal-weighted basis (the average monthly returns of all Alternative UCITS funds in each month cumulative), and 32% on an asset-weighted basis (which takes into account assets actually managed in each period).

Overall, growth in Alternative UCITS funds’ assets under management has been strong, but marked by peaks and valleys since the European Parliament and the Council of 21 January 2002 first granted UCITS funds greater freedom to follow alternative strategies. AUM growth of Alternative UCITS funds has increased from €5.40 billion in January 2002 to nearly €150 billion as of October 2011.

“This study indicates that Alternative UCITS funds are becoming more mainstream,” said Lisa Corvese, Managing Director of Global Strategy at PerTrac. As the study observes, “The turbulence of the last few years has compelled investors to seek out alternative investments with greater transparency, liquidity and risk controls. Based on a robust AUM growth since 2009, it would appear that Alternative UCITS funds have increasingly become a solution of choice.”

Press Release

bc

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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