Hedge fund UCITS will become a permanent part of the investment mainstream, according to Wyllie, portfolio manager of the Iveagh Newcits Fund which launched in June this year.
Wyllie says: “I am not sure the development of hedge fund UCITS will be completely plain sailing and will go through some growing pains, a degree of over population, over capacity with too many strategies and products.
“However, the good funds will survive and prosper and at the end of it you will have a newly investable asset class, which are regulated hedge funds. It could potentially be a big industry.”
There is potential for growth for so-called Newcits funds because retail investors now have access to the investment strategy.
“Most wealth managers and private banks allocate 20% to hedge funds for a typical client portfolio,” Wyllie says.