Tue, Aug 22, 2017
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. Opalesque Exclusive: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Comment: "Long-Term Investing": What managing drawdown risk can do to your long-term returns[more]

    Matthias Knab, Opalesque: Real Investment Advice writes on Harvest Exchange: Last week, I was having lunch with a prospective portfolio management client discussing the curre

  3. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  4. Investing - Hedge-fund honchos including David Tepper are loading up on Alibaba, Billionaire hedge fund manager Stanley Druckenmiller is betting big on the Chinese consumer, Big-name U.S. hedge funds shed healthcare stocks during the rally in second-quarter, U.S. hedge funds bearish on FAANG stocks in second-quarter, Hedge fund titan Viking Global made a $680 million bet on scandal-plagued Wells Fargo[more]

    Hedge-fund honchos including David Tepper are loading up on Alibaba From CNBC.com: David Tepper's Appaloosa Management and three other he ge funds took new stakes in Chinese e-commerce giant Alibaba in the second quarter, according to the latest quarterly filings. Appaloosa disclos

  5. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq