UCITS Hedge Funds $35 Billion

UCITS Hedge Funds $35 Bil

UCITS Hedge Funds Now Manage $35 Billion

The collapse of several hedge funds during the economic crisis and poor returns in 2008 has led many investors to push for more transparency and regulation.  This is clearly evidenced by the popularity of highly-regulated onshore European hedge funds.  UCITS hedge funds now manage an estimated $35 billion as more than 200 of these funds have debuted in the last 18-24 months.
According to Hedge Fund Research, more than 200 UCITS III-compliant hedge funds have debuted over the past 18 to 24 months. UCITS III funds, which constrained somewhat in their investment strategies and ability to use leverage, are free to be marketed and sold to investors across Europe, and are unlikely to be affected by the strict alternative investments directive making its way through the European Parliament.
“As the structural requirements of institutional investors continue to shape the landscape of the industry, funds conforming to Ucits III guidance have generated a significant amount of interest,” Kenneth Heinz, president of HFR, said. “Ucits III constitutes a compelling and tractable set of guidelines which serve to greatly enhance product transparency, cross-border distribution, and risk control, while at the same time providing an attractive alternative to other regulatory proposals under consideration by various financial regulatory authorities globally.”
Still, the UCITS total is a drop in the bucket of global hedge fund assets: According to HFR, hedge funds globally manage US$1.6 trillion.  Source

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