Single-manager funds: Local single managers

Tue Mar 4, 2008

Italy’s traditionally risk-averse institutional investors may be ready to give single-manager funds more attention

Single-manager hedge funds have historically played the role of the smaller cousin to the larger fund of hedge funds sector which has dominated the Italian market since its inception. Currently, only around 14 single managers account for approximately 6% of the overall hedge fund industry. However, there are strong signs they may be entering a period when they will enjoy a larger market share.

The tradition of risk aversion that prevails among Italian institutional investors and the cultural notion that hedge funds are ‘speculative’ instruments has stymied the demand for single-manager products. In addition, the costs involved in setting up a specialised SGR, the lack of any regulatory differentiation between single-manager funds and funds of funds, the absence of incubator firms to nurture emerging managers and a benchmark culture that has dampened the entrepreneurial...

ISSN: 2151-1845 / CDC10004H

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