Funds Hub

Money managers under the microscope

London’s future looks cloudy

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Data from HFI out today may provide further ammunition for those who fear London’s position as Europe’s hedge hub is under threat.

rtr27e5bLondon’s share of global hedge fund firms running more than $1 billion in assets slipped in the first half of 2009 to less than 15 percent from more than 17 percent.

Onshoring the hedge fund industry

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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.

rtxdixpThe firm, which has less than $200 mln in hedge fund assets, hopes to raise at least $100 mln with two new funds, including a Luxembourg-domiciled Ucits equity fund.

NAPF takes aim at EU AIFM draft

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The hedge fund industry’s anger at the EU’s Alternative Investment Fund Managers directive is hardly new now, but there are growing signs of discontent from another group — the pension funds that actually put their money into hedge funds.

rtxbhpaLast week we reported USS (the Universitied Superannuation Scheme) and Hermes, which manages BT’s pension scheme, were criticizing the draft laws for potentially limiting their investment choice and upsetting portfolio balance.

The use of UCITS

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Hedge funds are continuing to react to potentially seismic shifts in regulation.

rtr27xy2A number of firms, notably Man Group and Cheyne, are debuting onshore funds that will use the ucits structure — not only widening the potential pool of investors but also sidestepping the EU’s new draft directive on non-ucits funds and the surrounding uncertainty as the draft is debated.

Today Veritas said it is launching a long/short China ucits fund for top fund manager Ezra Sun, targeting an annual return of 15-20 percent.

Boutiques are back

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Starting a hedge fund from scratch has become notoriously difficult in the last couple of years.

rtx9q59Gone are the days, it has been said, when two traders with a terminal could rent out office space in Mayfair and attract a few hundred million dollars. Instead traders are staying put, either in banks (where they can) or in larger hedge funds.

Regulated are the cheesemakers

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Poul Nyrup Rasmussen, seen by many as the bane of the UK’s hedge funds industry for his input into the highly controversial EU directive on Alternative Investment Fund Managers, no doubt expected a hostile reception today at the Guildhall when he appeared at a debate hosted by Open Europe on the directive.

Whilst widely welcomed for his bravery in appearing, Rasmussen nevertheless came in for heavy criticism from City Minister Paul Myners, fellow panellists and an audience full of hedge fund and private equity representatives, making what was probably an uncomfortable lunchtime for the president of the EU assembly’s socialist bloc.

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