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From the Opalesque team:

While many regulators are still in the process of finalizing hedge fund policies, it appears as though the force of investor demands may effect the greatest changes across the global hedge fund industry. As funds around the globe jockey to be well positioned for the eventual reallocations of institutional investors, participants in the latest Opalesque Roundtable (France) discussed some of the pressures being put on managers by US-based institutional investors.

"There are mainly four points I heard repeatedly," Nathanael Benzaken, Managing Director at Lyxor said regarding his interactions with US institutional investors during a recent trip to the States. The four topics that US institutional investors are pushing for increased sway over are: transparency, liquidity, alignment of interests (particular to fee structures), and input into the corporate governance of a fund.

Benzaken also noted that US investors are pushing very hard for investing through managed accounts. "Interestingly enough we expect this trend to be long term," he said during the Roundtable discussion. "This is made possible because it seems that the managed account solution has been embraced by the manager community as a whole as a respectable way to grow, diversify, and stabilize their asset base and client mix."

Opalesque Note: As discussed in our coverage of MS......................

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