Reconsidering Funds of Hedge Funds

Chapter 3

The Limits of UCITS for Funds of Hedge Funds

Jeannine Daniel^∗ and François-Serge Lhabitant^†, ^∗Kedge Capital (UK) Ltd, London, UK, ^†Kedge Capital Fund Management, St Helier, Jersey

Chapter Outline

3.1. Introduction

3.2. The UCITS Industry

3.3. Challenges for a UCITS FoHFs Manager

3.3.1. Gaining Exposure

3.3.2. Lack of Depth of the Investment Universe

3.3.3. Geographic Bias

3.3.4. Manager Self-Selection Bias

3.3.5. Size and Operational Efficiency

3.4. Performances

Conclusion

Acknowledgments

References

Recommended Reading

3.1 Introduction

‘Undertakings for Collective Investments in Transferable Securities’ (UCITS) are a set of European Directives targeting pooled investment schemes – otherwise known as investment funds. Their primary ...