Institutional Investors

FoHFs use absolute return UCITS as a cash buffer, says report

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An increased number of fund of hedge funds are using absolute return UCITS as an alternative to cash, according to a report published by Credit Suisse.

Many investors have added an additional layer of enhanced liquidity alternatives into their portfolios as well as absolute return UCITS including hedge fund replicators, investible indices, managed accounts, and other investments that could be used to generate cash in a much shorter timeframe than from a typical hedge fund portfolio, according to Credit Suisse’s 2011 global investor survey Separating Fact from Fiction in the Hedge Fund Industry.

Average cash holdings for funds of