Performance: how the returns stack up so far
Tue Sep 21, 2010
Why tracking errors inevitably creep into the equation
Another reason why the broader emergence of absolute return
strategies may have been a disappointment to some investors has
been their overall performance over the past year or so, at a
number of levels. One of these is that even for those hedge
funds that aim to replicate as closely as possible offshore
strategies with proven track records, there will inevitably be
an element of tracking error, making it virtually impossible
for the performance of the UCITS-compliant product to provide a
mirror-image of the Cayman strategy. One example of a hedge
fund manager that has successfully replicated a number of its
offshore strategies in UCITS format is the London-based RWC
Partners, which has some $2.5 billion of assets under
management, $1.5 billion of which is now accounted for by
Luxembourg-registered UCITS III products. In October 2009, RWC
announced the launch of the US Absolute Alpha Fund, a
long-short equity strategy...
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