The single manager fund has been lagging behind in France in recent years. However, a range of small, new, boutique hedge funds may find a way of shining in a market dominated by institutional operators
It is generally recognised that, while the expansion of French funds of hedge funds (FoHFs) in recent years has been very encouraging, the same cannot yet be said of the market for single-manager funds.
“One of the reasons single-manager funds have been less successful than funds of funds is that French institutions, such as insurance funds, are not permitted to put more than 10% of their assets into alternatives, although in practice most are well below that limit,” explains Nicholas Gomart. “Given that limit, institutions prefer funds of funds because they don’t have the resources to monitor funds or to do the necessary due diligence.”
Gomart is deputy chief...