They come in various shapes and sizes
If the various advantages that are attracting so many institutional investors to managed accounts sound disarmingly simple, it is because the devil is in the detail - of which there is no shortage. Indeed, there is even some question about the precise definition of a managed account, and how - if at all - a managed account differs from a 'separate' or 'segregated' account. When asked to explain the difference between the two, one fund of funds manager investing via managed accounts very candidly reports: "I haven't a clue."
Laurent Guillet, CASAM, Martin Gagnon, Innocap Investment Management and Jim Cass, SEI
The vagueness of the term has persuaded some platform providers to eschew using the expression 'managed account' at all. Deutsche Bank, for example, has chosen not to use the term in its marketing materials, referring instead to its 'hedge fund platform', which it defines...