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Drew Hayworth From Kirsten Bischoff, Opalesque New York:
For Denver, Colorado based firm, Madison Street Partners, setting up a UCITS fund took approximately one year, from the beginning research steps to approval and launch. In an Opalesque TV interview with Matthias Knab, Drew Hayworth, Portfolio Manager, and co-founder of the $380m firm said that one of the most difficult things about launching the UCITS compliant fund was ensuring that the trades meeting the UCITS standards was adequately representative of the fund’s prior track record.
"One of the big issues for a lot of funds creating a UCITS version is the tracking error," Hayworth says. "What we do not want to have is investors looking at our past record (because that is what they are really evaluating), invest in a UCITS format and then six months later get something completely different."
For the long/short firm, having a very liquid portfolio, and existing levels of high transparency, and no leverage, a UCITS wrapper was a good fit.
"We have spent countless hours and weeks going through our past trading, the types of stocks we invested in, and the types of securities we invested in (both long and short) to make sure that it was truly applicable to the UCITS III compliant format, and it has worked out great for us," he says.
The main difference between the two...................... To view our full article Click here
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