An opportunity for German investors

Thu Mar 3, 2011




German investors have found it tough to invest in hedge funds because of the restrictions imposed by its local financial regulator.

The public marketing of foreign single hedge funds is not permitted and funds of hedge funds have to obtain a minimum amount of information about the funds to trade.


Michael Sanders from the Alceda platform 

Institutional investors in the country have on average only a minuscule 0.07% allocated to single strategy and fund of funds hedge funds, according to a 55-page investor report published by Deutsche Bank earlier this year.

It states: "German institutions have historically found it challenging to invest in traditional hedge funds because of the capital requirements needed to invest in offshore managers, and the limits BaFin (the financial regulator in Germany) has imposed on them.

"Institutions have therefore...

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