Investors Flock To UCITS Hedge Funds, But Not Those Run By Hedge Funds

May 13 2010 | 3:20am ET

Investors continue to flock to UCITS III-compliant hedge funds, according to a new report.

Research firm Strategic Insight said that UCITS hedge funds have attracted almost US$200 billion—about one-tenth of the roughly US$2 trillion managed by hedge funds worldwide. And the 1,000 UCITS funds aren’t only taking in money from Europe, but from Asia, Latin America and the U.S.

“The search for better performance and diversification is encouraging innovation in the fund industry, and leading to alternative products that were unimaginable in a retail context just a decade ago,” Jag Alexeyev, Strategic Insight’s head of global research, said.

The biggest beneficiaries of those inflows, however, are not hedge fund firms—many of which have rushed UCITS products to the market in recent months. Instead, traditional asset managers have stolen a march in the alternative UCITS arena.

“Most of the bigger products are managed by well-known fund companies with a long-only tradition, and only a few represent offerings by alternative fund managers,” Alexeyev said.

Indeed, Strategic Insight estimates that hedge fund firms manage less than US$50 billion of the US$200 billion attracted by UCITS hedge funds. Most of the UCITS funds launched by well-known hedge fund firms have failed to attract even US$100 million, the firm said.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...