Money managers under the microscope
Onshoring the hedge fund industry
Hedge fund executives are increasingly talking about the “onshoring” of the industry — new funds being domiciled in Luxembourg rather than Cayman, their traditional home — and our story today about RCM shows more and more are putting it into practice.
Clients, it said, including family offices and private wealth managers, were happier with a Luxembourg Ucits than a Cayman hedge fund.
Last month it was announced that Man Group and Cheyne Capital are launching Ucits funds.
Ucits funds are more flexible than traditional long-only funds but don’t give a manager all the tools that a Cayman hedge fund (where Ucits doesn’t extend to) would.
Nevertheless, for strategies such as long-short equity they can offer managers enough flexibility whilst giving investors access to funds they see as being more transparent.
Supporters of the EU’s controversial draft directive are hoping more and more hedge funds will come onshore, but perhaps the industry is already doing that for them.