More macro managers should launch UCITS versions of their funds, according to a fund of UCITS funds manager.
Macro strategies are ideal for the wrapper because they are very liquid with lots of capacity and would therefore meet daily or weekly liquidity UCITS requirements, according to William Kitchin, portfolio manager for the multi-manger Casteel Diversified Fund.
However, the strategy has not performed too well over recent months, he admits. Macro funds have been flat year-to-date to June 2011, returning 0.32%, according to the HedgeFund Intelligence global index.
The Absolute UCITS database currently tracks a total of 848 funds including all share classes. More than 140 of these funds are in the European equity and only 74 are macro funds.
Managing partner of Casteel Capital: Cedric Lamielle:
Kitchin says: When we started to build the portfolio and the first question we asked which...