Recent events have fuelled a rush to managed accounts by hedge fund investors seeking better control and transparency. But will they be the panacea that investors are looking for?
After their generally miserable time in 2008, it is hardly surprising that hedge fund investors have started demanding better terms from managers and much greater control over how their money is being run.
As a result, demand is soaring for managed accounts - in the hope that these separately run accounts will give investors the enhanced transparency that they now crave and better control of all aspects of the portfolio ranging from individual positions through to cash management, asset administration and valuation processes.
Interest in accessing hedge funds via managed accounts has increased steadily over the last few years. But it has spiked dramatically on the back of 2008, when many investors found themselves at the mercy of other investors in the...