Survey: UCITS Hedge Funds Number More Than 1,000

Oct 7 2011 | 10:40am ET

The UCITS III-compliant hedge fund business has surpassed an impressive milestone.

There are now more than 1,000 such single-manager funds, according to the latest monthly fund report from Naisscent Capital/ucitsfunds.eu. There are also more than 100 UCITS-compliant funds of funds.

Some 65% of the funds debuted after the financial crisis, as investors clamored for the relative safety of the highly-regulated products. Some 350 such funds launched last year alone, with another 150 this year.

Long/short equity strategies are most popular, making up about 22% of UCITS hedge funds. Absolute return accounts for about 18% and equity market neutral 7%.

Luxembourg is the undisputed capital of the UCITS universe, with more than half of the funds, 555, domiciled in the Grand Duchy. Ireland boasts 225 and France 130.

What the report doesn’t say is just how much money these funds manage. Luigi Amato, the report’s publisher and a partner at Naisscent Capital, told FINalternatives determining the total assets managed by the 1,000 funds surveyed was difficult because not all funds report that information. Naisscent’s best guess at total alternative UCITS AUM puts it between $80 and $120 billion, which means the regulated funds have a way to go to catch up to the broader hedge fund market, which manages some $2 trillion.

Some critics have expressed concern about the long-term sustainability of alternative UCITS and the extent to which traditional hedge fund strategies must be modified to fit the UCITS wrapper with its requirements for things like bi-weekly liquidity. The Naisscent report, however, shows that 85% of single funds report daily prices and almost all funds offer daily or weekly liquidity.


In Depth

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note