UCITS III: hedge fund lifeline

Investment rules that allow mainstream funds to use leverage, derivatives and short selling were always supposed to open the door for hedge funds to target the much larger client base of mainstream managers. Relatively little of this convergence has happened, but following redemptions during the financial crisis, hedge funds need new investors and may look again to the Ucits III rules for help.Latest data from Lipper Feri detailing companies that manage Ucits funds with an absolute or total return profile show that all the companies in the top 20 by assets are traditional firms (see table) – as indeed are most of the firms outside the top 20.The data also show that, in all, there are 644 entities offering 957 absolute/total return Ucits funds with assets under management of €99.5bn. Companies typically have only a couple of funds in this category.

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http://www.funds-europe.com/June-2009/UCITS-III-hedge-fund-lifeline/menu-id-228.html