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Last updated 21 hours ago
Apr 24 2013 | 10:54am ET
Switzerland went 0-for-2012 in terms of hedge fund launches last year. This year promises to be quite different—thanks in part to the country's new hedge fund regulations.
At least 10 hedge funds are expected to launch in Switzerland this year. The country's new hedge fund rules appear to have attracted institutional investors who previously shunned the Swiss light-touch regime.
Among the new launches will be offerings from veteran JPMorgan Chase trader Deepak Gulati and former GLG Partners portfolio manager James Berger. The new launches could boost the size of the US$24 billion industry by one-third, according to Credit Suisse.
Hedge funds entirely shied away from Switzerland last year, as the country's Parliament worked on tougher new regulations. Switzerland's rules are now similar to those in the European Union, of which the country is not a member.
"It's smart regulation," Philippe Gougenheim, the former head of Unigestion's fund of hedge funds unit, told Reuters. "I'm sure it will help tap into institutional money."