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By the Opalesque team:

In the last few months, quite a few French fund houses have launched or talked of launching new funds under the ever popular European passporting structure UCITS III; Dexia Asset Management (Opalesque Exclusive); Laffitte Capital Management (Reuters); Finaltis (Opalesque Exclusive).

Not all French hedge fund managers, however, want to launch into the UCITS arena. Cyril Juliard, co-founder of Eraam, an independent fund manager based in Paris, told NewsManagers last month that "UCITS III was never meant to be a vehicle for hedge funds. It is hedge funds who turned it around to their advantage." As indeed, under this structure, leverage is limited and one cannot sell short, so only a few strategies can be used. Although it offers the advantages of good liquidity terms and no gating, Juliard does not believe it will necessarily stay that way if there is systemic risk (Opalesque Exclusive). If you thought that there was a possibility to short in UCITS, you wer......................

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