UCITS III Hedge Funds Survey

UCITS III Hedge Funds Survey

Survey Finds UCITS Funds May Hurt Hedge Funds Returns

A recent survey showed that UCITS III hedge funds could have a negative impact on hedge funds, although the UCITS trend is expected to continue.  Almost 7 of 10 respondents said that the increase in UCITS versions of hedge fund strategies “liquidity premium of hedge fund strategies to disappear” and performance will fall.
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

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