Wednesday, 23 July 2014
Last updated 9 min ago
Oct 28 2010 | 4:20am ET
BlueCrest Capital Management will shutter the largest UCITS III-compliant hedge fund product, not because of poor performance, but because the structure was failing to track its flagship hedge fund.
The $630 million BlueTrend UCITS Fund will stop trading at the end of next month, the Financial Times reports. The popular fund must go, BlueCrest told investors yesterday, because it has failed to accurately track the $9 billion BlueTrend fund—and the disparity is likely to get worse.
"It is anticipated based on analysis by the investment manager, BlueCrest Capital Management LLP, that this tracking error may increase further in the economic conditions," the firm wrote.
Which is not to say that the fund has done badly since its debut at the beginning of last year. The UCITS version is up 11% this year.
But the restrictions imposed on UCITS funds have apparently prevented BlueCrest from matching the main BlueTrend fund's performance, and figured in the firm's decision to close the fund, according to the FT.
Jul 8 2014 | 10:48am ET
The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…