09/08/2010 Author: Edward Dean

Traditional products outperform Ucits funds, data shows 

Traditionally-structured hedge funds outperformed Ucits-compliant hedge funds in both July and for the year to date, according the latest market data.

Current figures from the Ucits Alternative Index Global indicated that Ucits-compliant funds were up 0.53% in July, with their year to date performance was negative, at -0.28%.

In comparison, the HFRI Fund Weighted Composite Index, compiled by Hedge Fund Research, showed traditional hedge funds up 1.82% in July, with year to date performance at 1.52%.

The figures indicate that Ucits-compliant hedge funds still have some way to go before they are able to offer the rates of return normally enjoyed by traditionally-structured hedge funds; however performance statistics for both Ucits hedge funds and non-onshore traditional hedge funds trailed the stock market, with major US stock indices posting gains of approximately 7% in July.

Losses in May and June were the driving factors behind the lacklustre gains, with hedge funds cutting their exposure to stocks in July as a result. Other funds bet against the Euro but subsequently experienced losses as fears of a Euro debt-crisis abated.