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Hedge funds plan onshore versions

Date: Monday, November 23, 2009
Author: Steve Johnson, Financial Times

More than half of European hedge fund companies plan to launch regulated, onshore versions of their strategies or have already done so, according to HedgeFund Intelligence, a research group.

A fifth of European hedge fund managers have launched, or are launching, a mainstream Ucits III mutual fund, while another third say they are considering doing so, HFI’s survey of 650 houses found.

A series of high-profile managers, such as Brevan Howard, Man Group and Marshall Wace have unveiled Ucits funds since 2007, allowing them to raise funds from small investors and institutions that prefer the relative safety of regulated vehicles. Industry sources suggest about 100 such vehicles have been launched to date.

“Considering the flexibility Ucits III offers, we’re forecasting that [this] trend will continue,” said Damian Alexander of HFI. Of the Ucits hedge funds HFI is aware of, a third are long/short equity funds, one-sixth equity market neutral or quantitative and 11 per cent managed futures.