Industry Analysis

Harnessing the convergence between traditional and alternative investments


The revival of SEC fund registration is slow but remains popular with big banks and large FoHF brands wanting to deepen distribution and go retail

By Niki Natarajan

The growth of funds of hedge funds registered with the SEC under the 1940 Act in the US has been very slow in taking off, and the much anticipated revival is only now starting to gather a modicum of momentum. Despite this, there are a number of reasons why the time for a regulated and transparent wrapper is finally coming. Perhaps the most important one is the convergence of alternative and traditional investments, and the registered investment company in the US and the UCITS structures in Europe are allowing this