Many traditional asset managers are launching UCITS hedge funds or expanding their investment strategies to include products that use hedging strategies, according to Tykoczinski, a member within risk management department at London-based Kinetic Partners.
The trend of traditional assets managers moving towards hedge fund UCITS is shown by Standard Life Investments converting its $8.4 billion (£5.22 billion) Global Absolute Return Strategies fund into a UCITS III wrapper last month.
Tykoczinski says: “There are many traditional managers that have or are starting to use alternative strategies. UCITS III funds are considered to be for sophisticated investors. Traditional asset...