Industry Analysis Retail Investors

UCITS hedge funds: boom time?


In 2007, before the sub-prime mortgage market in the US triggered the global financial crisis, the world-wide recession and financial indices and interest rates around the world dropped to historical lows, there were very few hedge fund managers offering their funds wrapped up in UCITS.

The debt and leverage fueled years after the dot-com bubble burst, saw the global hedge funds industry grow from $450 billion in 2000 and peaking at $2.7 trillion in mid-2008.

Jeremy Soutter

The collapse of Lehman Brothers, the Bernie Madoff scandal, fund blow-ups, poor performance of some hedge funds and the widespread – if false – perception that shorting could bring companies, especially banks, and countries to their knees followed this poignant crescendo in 2008. These factors, and other tremors, resulted in greater global regulatory scrutiny of the sector and resulted in a growing appetite