Some regulators are skeptical about the merits of UCITS hedge funds, according to a report published by PricewaterhouseCoopers, From black box to open book: Hedge fund trust and transparency.
Andrew Crain, manager of London-based Financial Services Authority’s alternative investments and asset management team, explains: “As we see the market for UCITS-type products with hedge fund attributes proliferate, there may be an increased risk of mis-selling or misunderstanding.
“Structural differences between UCITS products and the underlying hedge funds they are...