01/06/2010

To list or not to list?

Last year, a series of share buybacks and successfully carried continuation votes buoyed a beleaguered listed hedge fund sector. With the majority still trading at a discount in 2010, a number of funds are now facing a new round of voting (see news, p5), as shareholders choose between winding-up or carrying on. In the face of this apparent threat, confidence in the sector still remains high as a new range of investors show interest. And though ‘Newcits’ remain, for many, the regulated fund du jour, according to a recent RBS survey only a quarter of those at listed funds perceived the Ucits product as a potential threat. According to Mark James of RBS Global Banking & Markets, there are still many hedge fund strategies that are better suited to a closed-ended listed fund. “It [the growth of Ucits] certainly doesn’t ring the death knell for the listed sector,” he said.