Opinion

Event-driven works under UCITS

by

COMMENT: Fabrice Seiman, co-president of Lutetia Capital

Even though we are still a long way off from the 9000 hedge funds and funds of hedge funds, there has been an unprecedented boom in the launch of UCITS-compliant hedge funds, or so called Newcits, over the past eighteen months. This trend is likely to continue, since this format addresses the demands for transparency, liquidity, regulation and diversification of investors, institutional investors in particular.

Although the UCITS framework offers easy access to an alternative world of investment, it does not allow all strategies to be applied. In addition to limiting the degree of leverage, current European regulations disallow,