Wed, Jan 24, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque UCITS intelligence

Editorial

Wednesday, July 24, 2013

Sophie

In its latest report, the hedge fund research firm PREQIN had some interesting research on Alternative UCITS (the report is freely available). Highlights included:

  • 86% of investors in UCITS hedge funds are based in Europe
  • Long/Short equity has been the most commonly sought UCITS by investors in the last 12 months
  • Half of the UCITS hedge fund pursues a Long/Short strategy
  • 12% of UCITS funds are managed by US based fund managers
  • UCITS hedge funds returned 2.46% in Q1 2013 compared to 3.22% for hedge funds

First, I would like to outline the difficulty to analyze the funds and strategies universes which combine hedge fund managers and long only firms. Is the biggest fund under that category ( ie Standard Life Global Absolute Return Strategies Fund)– suitable under Alternative UCITS? With $25 billion under management is its weight appropriate ?

It makes sense to divide Alternative UCITS in two universes: Hedge funds and long only in order to identify the style of management and compare funds that are using similar investment guidelines.

Some allocators such as Daniel Capocci, CIO at Archidas selecting UCITS, explains that combining the brand of long only managers with specific Long/Short skills in hedge fund managers gives a good mix to investors, especially retail investors.

Yes indeed, Long/Short equity strategy is the strategy that probably fits the best under a UCITS format. We have addressed this issue in our interview with event driven managers.

Most asset allocators and investors recognize that the pool of talent is mainly European. See PSAM’s comment in this edition on their experience in bringing their US expertise under a UCITS format.

Finally, the levels of returns are still a critical aspect of UCITS funds at a time where retail and institutional investors are looking for yields! However, investors in general are aware that liquidity and regulation are limiting their investment processes and therefore their upside in performance. I remain extremely prudent on the level of communication to investors on strategies such as Risk Parity, especially when the performance volatility, ; as experienced in May and June, could have a negative impact on the UCITS brand.

When Matthias and I were at the GAIM Conference, we met several investors and asset allocators who were pleased to read more about the UCITS platforms and their models. Consequently, we have decided to provide even more insight on this specific universe and we will continue to follow in our coming editions.

We wish you a happy reading and are look forward to hearing your feedback !
Have a lovely summer !

Sophie
sophie@opalesque.com



 
This article was published in Opalesque UCITS intelligence.
Opalesque UCITS intelligence
Opalesque UCITS intelligence
Opalesque UCITS intelligence
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: Statsure Financial launches captive insurer for hedge funds[more]

    Bailey McCann, Opalesque New York: Hedge fund managers have a new option for protecting their business. Launching this week at the annual MFA Conference, Statsure Financial is offering a captive insurance solution for hedge fund managers. Many large companies have captive insurers - insurance

  2. U.S. economy, inflation and alternative investments to dominate 2018 markets, says family office Wilmington Trust[more]

    Komfie Manalo, Opalesque Asia: The emergence of a late-cycle economy in the U.S., the mystery of inflation and growth from a domestic and global perspective, and the potential for alternative investments to prosper against a backdrop of rich valuations, low yields, and higher volatility are the t

  3. Performance - Some hedge funds deliver double-digit gains for 2017, Brevan Howard's hedge fund suffers biggest annual loss in 2017, Crispin Odey's flagship hedge fund plummeted about 20% in 2017, Profits fall 90% at ex-Morgan Stanley banker's hedge fund, Fannie-Freddie overhaul might mint hedge fund riches, losses[more]

    Some hedge funds deliver double-digit gains for 2017 From Reuters/Investing.com: A handful of hedge funds ended 2017 with double digit returns, their investors said, at a time the $3 trillion industry took in fresh money and posted its best returns in years, industry data show. Act

  4. Investing - Hedge funds start 2018 with record $19 billion bet on the euro, Hedge fund Kora Management invests in Satin Creditcare[more]

    Hedge funds start 2018 with record $19 billion bet on the euro From Reuters.com: Hedge funds have kicked off 2018 with their biggest bet ever on the euro rising, a clear vote of confidence in the single currency but, with positioning so stretched, one which could backfire in the near ter

  5. News Briefs - Mobius to retire from Franklin Templeton, Authorities decrypt smart phone of Princeton grad charged with killing Manhattan hedge fund dad, Investigators seize (more) antiques from hedge-fund billionaire Michael Steinhardt's collection[more]

    Mobius to retire from Franklin Templeton Emerging markets pioneer Mark Mobius will be stepping down as executive chairman of the Templeton Emerging Markets Group (TEMG) and formally retire from Franklin Templeton on 31 January. He will also be relinquishing his post as portfolio manager