Tue, Dec 23, 2014
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. Hong Kong-Shanghai stock link fails to live up to expectation so far[more]

    Komfie Manalo, Opalesque Asia: In a report, Reuters said that demand has been subdued with the bulk of activities coming from short-term speculative investors. Las

  2. Investing - Hedge funds get boost from healthcare in 2014, Paulson & Co takes stake in Salix on heels of inventory issues[more]

    Hedge funds get boost from healthcare in 2014 From Valuewalk.com: The healthcare sector started the year on a turbulent note, as stocks of many major biotechnology companies were battered. However, most of the players in this sector have bounced back. The BarclayHedge Healthcare & Biotec

  3. North America - Why Steve Cohen, Connecticut hedge fund billionaire, gives so much in New York[more]

    From Insidephilantrophy.com: Billionaire Steve Cohen was born in Great Neck, New York before attending Wharton, working on Wall Street and then founding SAC Capital Advisors in Connecticut. Though his company (Point72) and foundation are based in Connecticut, Cohen and Alexandra are deeply connected

  4. Investing - Soros buys a highly speculative biotech in the third quarter[more]

    From Fool.com: …The Soros Fund bought 25,000 shares of the struggling small-cap biopharma Aegerion Pharmaceuticals in the third quarter. For those of you who haven't heard of this name, suffice to say that this was a surprising buy in light of the company's recent problems and poor outlook going for

  5. CFTC Revokes Registrations of Illinois Resident Aleks A. Kins and Chicago-based AlphaMetrix, LLC[more]

    Matthias Knab, Opalesque: The U.S. Commodity Futures Trading Commission (CFTC) today announced that it has revoked the registration of Aleks A. Kins of Chicago, Illinois, as an Associated Person and the registrations of AlphaMetrix, LLC (AlphaMetrix), a Delaware limited liability company with its