Survey: UCITS Funds Could Cause Hedge Fund Returns To ‘Disappear’

May 13 2010 | 12:27pm ET

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.


In Depth

An Interview With Harvest Volatility Management's Rick Selvala

Mar 23 2017 | 5:39pm ET

Several years of extremely low interest rates have pushed some investors into equities...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

SEI: Private Debt Coming Into Its Own

Mar 8 2017 | 9:24pm ET

The explosive growth of private debt over the past few years has caused the lines...