UCITS III Hedge Funds Survey
Survey Finds UCITS Funds May Hurt Hedge Funds Returns
The growing popularity of UCITS III-compliant hedge funds could be the worst thing for them—and hedge funds generally.
In a recent EDHEC-Risk Institute survey, nearly seven in 10 respondents say the increasing proliferation of UCITS versions of major hedge fund strategies will cause the “liquidity premium of hedge fund strategies” to “disappear” and that “performance will fall,” HFMWeek reports.
Still, 90% of respondents say that the UCITS trend will continue. And two thirds of them plan to take part, aiming to create UCITS versions of their own funds to avoid being shut out by strict new European Union hedge fund regulations. Source