They may have shunned the UCITS III format since its inception, but lately there’s been no shortage of hedge fund firms rushing to offer UCITS-compliant vehicles.

The latest is Collins Stewart Fund Management, which has launched a UCITS-compliant fund of absolute return funds. The new Alternative Strategies fund features daily liquidity and imposes neither a lockup nor any redemption penalties. The Dublin-domiciled vehicle is targeting an annual return of between 6% and 10%.

“Dozens of hedge funds are launching replica funds to conform with Ucits III regulation, and this is making it increasingly difficult for investors and their advisers to choose the most suitable funds,” Mike Brown, head of sales at Collins Stewart, told the Financial Times. “Understanding the sophisticated tool kit used by these replica hedge funds is of paramount importance to successful fund selection.”