Although foreign sub-advisers are losing business to local
in-house expertise, reflecting the growing maturity of
Italys hedge fund industry, they still have a role to
Among the various peculiarities that characterise
Italys funds of hedge funds, the widespread use of
foreign sub-advisers is undoubtedly one of the most prominent.
The practice extends back to the earliest days of the industry
and, while it has been declining in recent years, it still
plays an important role for certain firms. Indeed, for
international equities, even Italian mutual fund companies have
historically hired foreign sub-advisers.
The roster of sub-advisers includes some of the best-known
names in global hedge fund management. Also, the advisory
business is highly concentrated with the top five advisers:
Union Bancaire Privée, FIM Advisers, Tarchon Capital
Management, Ivy Asset Management and HSBC, taking a combined
market share of around 85%. UBP alone accounts for over...