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