Sat, Mar 7, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

ML Capital: first real revolution in hedge fund business has started; regulations will force funds into becoming mainstream investments

Tuesday, October 20, 2009
Opalesque Industry Updates - According to a report received by Opalesque, John Lowry of the European advisory firm ML Capital gave an interesting speech as guest speaker at the 5th Annual Hedge Funds World LatAm 2009 Conference yesterday.

***

John Lowry, chairman and co-founder of ML Capital, today warned the cream of Latin American hedge fund managers at the 5th Annual Hedge Funds.World LatAm Conference that many hedge fund managers do not realise their industry is undergoing a revolution. He predicts that new US and European regulations will force them into becoming mainstream investments.

As one of Europe’s leading hedge fund distributors and the Miami conference’s guest speaker from Europe, John Lowry said “In 2008, the MSCI World fell by 42%, whilst the average hedge fund fell by 18.3%. Many hedge funds demonstrated they offer significant benefits when used for their original purpose of creating steadier returns for their clients. My company’s recent research shows that this is what is leading to the upsurge of institutional investors’ demand for portfolio-hedging and hedge funds.”

“Emerging markets are likely to continue as an increasingly popular investment destination for some years” he continued. “LatAm markets and LatAm-focused hedge funds will be major beneficiaries. What a fantastic opportunity for Latam hedge fund managers to start winning Europe’s pensions & investment fund managers as long-term investors.”

However, many Euro-politicians have reacted to the crunch by proposing punitive conditions on the distribution of funds that are not domiciled within the EU. This is protectionism, effectively, and it has been suggested that funds should have an EU identity to trade there, or at the very least, should hold EU marketing passports. ML Capital’s research suggests that this would immediately slash demand for Latin American funds in their present form, just when they have so much to offer.”

Fortunately, Lowry sees a solution. “My instinct is that the most restrictive aspects of the proposed UCITS III legislation will not be put into practice. However, investors now require evidence of greater risk controls and regulation. The UCITS III ‘stamp of approval’ is now available to many hedge funds, and I hope and believe that by embracing the UCITS framework, Latin American hedge funds will be welcomed across the world, including the EU.”

Although hedge fund managers have traditionally shied away from public scrutiny with offshore-registered funds, John Lowry believes they may now see the benefits of taking the European onshore route for parts of their business. He said that UCITS III-type funds consisting of one or more hedge funds will be able to be marketed to retail as well as professional investors throughout Europe. He believes that a new market of 200 million EU citizens will attract those LatAm hedge fund managers that are willing to take advantage of the seismic changes taking place.”


About ML Capital
ML Capital is a leading independent European provider of both advisory and business development solutions for alternative assets managers. It is based in Malta and Geneva and is owned by its management. ML’s expertise includes marketing, product development, capital introductions, due diligence, ethics, and governance. ML’s industry contacts, personally developed over decades, now include over 1,500 leading investors and more than 1,000 managers and funds, worldwide. www.mlcapital.com


Be

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. SkyBridge opens office in Palm Beach County[more]

    Where better for a southern location than South Florida? SkyBridge Capital, which is headquartered in New York, has opened an office in Palm Beach Gardens. Palm Beach Gardens is a "Signature City" in northern Palm Beach County, with a population of around 49,000.

  2. Outlook - Philippe Jordan predicts 'alternative beta' to displace hedge funds, Stan Druckenmiller says Europe, Japan stocks will outpace U.S.[more]

    Philippe Jordan predicts 'alternative beta' to displace hedge funds From Investordaily.com.au: The disappointing performance of hedge funds in recent years is a result of "too much money chasing too little alpha", argues Capital Fund Management. Speaking to InvestorDaily, CFM partner Phi

  3. Patrick McCormack to shut down hedge fund Tiger Consumer[more]

    Komfie Manalo, Opalesque Asia: Patrick McCormack is shutting down his hedge fund Tiger Consumer Management after 15 years "to spend more time with his family," reported Reuters. Tiger Consumer ended February up 4.6% (+3.9% YTD) and assets roughly $1.4bn, reported

  4. Investing - As rig count falls, hedge funds pile into long crude futures, Parus tactically shifts long/short exposure ratios, Mario Draghi outflanking Kuroda as bearish euro bets surge, Prime Capital’s 500.com bet derailed after 41% drop[more]

    As rig count falls, hedge funds pile into long crude futures From 247wallst.com: In the week ended February 27, the total number of rigs drilling for oil in the United States came in at 986, compared with 1,019 in the prior week and 1,430 a year ago. Including 281 other rigs mostly drill

  5. Outlook - 5 reasons why 2015 is looking like a breakout year for alternative investments, Hedge fund manager Dan Loeb predicts disappointment for funds seeking energy distress[more]

    5 reasons why 2015 is looking like a breakout year for alternative investments From Forbes.com: …After a strong 2014, the public markets have been off to a choppy start in 2015. This year, savvy investors may be looking for alpha elsewhere. For many institutions and high-net-worth indivi