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Against the backdrop of difficult market conditions and growing investor…
26/07/2011
Lines between traditional and alternative asset classes continue to blur. In Europe this has boosted the use of Ucits, but here in the US, manager options are less clear-cut. However, in an attempt to widen investor bases and add transparency, a number of stateside managers are registering offshore funds as domestic mutual funds, in accordance with the US Investment Company Act of 1940.
The upswing has been notable. Last month, Philadelphia Investment Partners, a New Jersey-based financial advisory firm, transformed its New Generation Fund into a ‘40 Act’ fund, deploying the same strategy with an options overlay. Convergence Investment Partners, a Kansas-based quantitative manager, has also turned to the Act, converting its Convergence Core Plus Fund, a long/short offering, into a traditional investment.
“We changed for the obvious reasons of accessibility, liquidity and transparency, and there seems to be a significant demand for strategies applying what are traditionally alternative strategies,” said David Schulz, director of marketing at Convergence Investment Partners.
ConvergEx Group’s NorthPoint Trading Partners has seen a number of its hedge fund clients make recent forays into mutual funds, either adding them to existing offerings, or transforming funds altogether into traditional vehicles. Doug Nelson, CEO, said the recent transformations have to do with ease of accessing capital, as mutual funds have more options in marketing their offerings.
“There is a lot more interest in alternative strategies but not everyone has the ability to invest in a limited partnership, so the money management community is essentially filling that void by creating mutual funds.”
07/06/2012
Join us and our panel of experts for HFMWeek's Subscribers' Club June's UK breakfast briefing, 'Impact…
31/05/2012
The next US HFMWeek Subscribers' Club breakfast, will take place on Thursday May 31. Join us and…
02/02/2011
HFMWeek's European Hedge Fund Services Awards are designed to recognise companies that have outperformed...
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