Earlier this year we wrote about the growing performance gap that has emerged between hedge funds and their alternative UCITS (“alt UCITS”) counterparts between 2013 and the end of 2021.
Alt UCITS are regulated funds which, due to incremental expansion of eligible assets over the years, have brought hedge fund-like investment strategies to non-institutional investors.
Hedge funds are largely unconstrained in their investment style and the instruments traded. Alt UCITS funds are subject to additional rules on fund terms, concentration, liquidity, portfolio transparency and instruments traded. They also tend to have lower fees than the “two and 20” seen in traditional hedge funds.
Considering the significant volatility in traditional assets and diverging hedge fund strategy performance so far this year, the below update gives further insight following on from our last piece.
