News

Latest news and insights related to the Alternative UCITS market

On average, Alternative UCITS funds suffered during October’s market correction with almost every strategy index showing a negative performance. The LuxHedge Global Alternative UCITS Index posted a loss of -1.67%, bringing YTD down to -3.08%, the worst drawdown since early 2016....

Jupiter Asset Management has launched a US Equity Long Short fund that aims to generate an absolute return over a 3 year rolling period, reduce the correlation with stock markets and limit the overall volatility of portfolio returns....

Many Alternative UCITS funds continue to have a difficult time delivering in 2018. The LuxHedge Global Alternative UCITS Index posted a small loss of -0.01%, bringing 2018 YTD to -1.43%. Half of the nearly 1000 index constituents posted positive results in September. Fund picking remains of utmost i...

Pictet Asset Management announced the launch of a new Japanese Equity Market Neutral Strategy within their total return fund range. The TR Akari UCITS seeks exposure to liquid large cap stocks and will offer a weekly liquidity. The two investment managers previously already managed money in Pictet's...

UBS Asset Management has closed its A&Q Diversified Alternative Portfolio UCITS fund, a fund of fund which sits within their Alternative Solutions Umbrella. It was implied that the A&Q Diversified Alternative Portfolio UCITS fund wasn’t getting enough traction in a difficult environment for risk p...

Total Assets under Management in Europe increased to EUR 25.2 trillion in 2017, a hike of 10%. Of the total AUM, 52% is managed by European investment funds, the remaining 48% are discretionary mandates. Institutional investors represent the largest client category of the European asset managemen...

Ofi Asset Management and Candriam announced a partnership on merger arbitrage strategies. As part of the deal, the Ofi Risk Arb Absolu fund will become a feeder fund that fully invests in the Candriam Risk Arbitrage master fund. The two managers of the Ofi fund have joined absolute performance inves...

After one of its fund managers was suspended earlier this week and investors started pulling money out, GAM has halted trading in its unconstrained and absolute return bond funds (>6BEUR AUM). In a statement released on August 2nd, GAM commented: “Although the funds have the necessary liquidity to...

K2 Advisors published a short video detailing out their hedge fund strategy preferences for Q3 of 2018. Their top preference is on Event Driven. With the At&T Time Warner merger cleared, this has relieved concerns that the government would put constraints on future M&A activities. T...

After one of its fund managers was suspended earlier this week and investors started pulling money out, GAM has halted trading in its unconstrained and absolute return bond funds (>6BEUR AUM). In a statement released on August 2nd, GAM commented: “Although the funds have the necessary liquidity to...

Osmosis Investment Management announced the launch of a new UCITS fund “Osmosis MoRE World Resource Efficiency Fund – Sustainable Market Neutral”. It will provide investors with absolute returns, uncorrelated to equity markets, while delivering a significantly reduced net environmental footpri...

Fifteen years after the launch of Tulip Trend Fund in 2003, Progressive Capital Partners has announced the expansion of its trend-following offering with a UCITS version of Tulip Trend Fund. Both the original Tulip Trend Fund and the UCITS version are sub-advised by Transtrend, a Rotterdam based CT...

A bit more than 60% of Alternative UCITS funds posted losses in May, the LuxHedge Global Alternative UCITS Index lost -0.37%, bringing 2018 YTD to -0.83%. Dispersion amongst Alternative UCITS funds was even more pronounced than usual with the worst fund returning -19% (leveraged Global Macro) and...

German asset manager TBF announced the launch of a new UCITS fund “TBF Global Equity LS”. The fund pursues a market neutral strategy with a long portfolio that consists of "best idea" stocks from the TBF universe, fully covered with a short exposure on index level. It is intended for defensive ...

Leveraged loan specialist Highland Capital Management has announced the launch of a collateralised loan obligations fund on the Montlake UCITS platform. The fund will invests in US and European floating rate CLO debt with a dynamic allocation across ratings categories....

In the current more volatile market environment, Alternative UCITS funds become increasingly popular with investors that seek diversifying return streams. Assets under Management for the total universe advanced again with +5BEUR in April to reach 465BEUR, another record high....

Dalton Strategic Partnership (DSP) announced the launch of a new Systematic Global Macro UCITS. The fund aims for 7-10% annualized returns net of fees on a rolling 3-year basis with a target volatility of 7% by allocating across most liquid asset classes globally. The investment process is complete...

Cheyne Capital Management will manage a new arbitrage focussed UCITS fund on the Union Bancaire Privée UCITS platform. The fund will combine a core yield component with merger arbitrage and oportunistic arbitrage strategies. According to Cheyne, the strategy is very well suited to today’s incr...

French asset manager Groupama AM has announced the launch of G Fund – Absolute Return Bonds. The new vehicle aims to outperform EONIA through directional and relative value arbitrage strategies gaining long and short exposure on global fixed income, credit and foreign exchange markets. Groupama...

Selwood Asset Management is now offering its Market Neutral Credit UCITS strategy through the Deutsche Bank Platinum platform. The fund launched on April 13th and currently has 300MUSD of assets under management. The strategy targets a net return of about 6% … 7% by capturing a historical dislocat...

Zadig Gestion has decided to soft-close their Memnon Market Neutral fund. Currently 312MEUR in assets and running close to the startegy’s capacity, this decision has been taken to protect interests of current shareholders in the fund. Zadig Gestion is a Luxembourg based investment manageme...

H2O Asset Management and Quadra Capital Partners have signed a partnership deal to team up on the development of new alternative strategies. The new partnership will enable H2O AM to expand its range of alternative products. Quadra’s Global Equity Alpha fund keeps its investment policy but will be...

As total assets for the hedge fund industry grew in 2017, fund liquidations declined sharply. For the second consecutive quarter, hedge fund launches exceeded liquidations in Q4 2017, according to the latest HFR Market Microstructure Report. ...

UK manager J8 Capital Management and German investment company Universal-Investment have launched the UI - J8 Global Absolute Return UCITS Fund. The fund implements a scientifically-backed, systematic and rules-based multi strategy approach focused on momentum, carry and value trades. ...

The HFRX Global hedge Fund Index lost 2.42% in February, a first decline since October of 2016. All major strategies lost ground, especially quantitative trend-following CTA’s who were caught on the long equity side. Equity Hedge limited the loss to -1.49%, partially offset by long exposures to...

The Carmignac Euro Patrimoine fund has undergone a strategy change towards a European L/S approach, renaming the fund to “Carmignac Portfolio Long-Short European Equities". Net equity exposure will range between -20% and 50% of assets. The fund will keep a small long bias and has changed its bench...

Union Investment announced the launch of the UniInstitutional MultiPremia fund. The strategy targets absolute returns and allocates to a variety of alternative risk premia such as value, momentum, size and carry in a diversified set of asset classes including equities, fixed income, currencies and c...

Syz AM announced the launch of “OYSTER Equity Premia Global”, a market neutral L/S UCITS fund. The firm already runs an Alternative Risk Premia fund on European equities. They now added models for US, Japan and the rest of the world in the lauch of this new global vehicle. Syz AM commented that ...

In line with the broader hedge fund market, Alternative UCITS funds profited from the rising volatility in fixed income and equity markets towards the end of the month. The LuxHedge Global Alternative UCITS index advanced with +0.93%, the largest monthly gain since October of 2015. ...

Luxembourg based LRI Group and Swiss M17 Capital management are partnering up for the launch of a new European Equity Market Neutral UCITS fund. Markus Matuszek, CIO of M17 Capital Management, described the investment approach as ‘bottom-up, market-cap agnostic yet liquidity cognisant’. With 30 ...

London based boutique firm Valeur Capital is launching a brand new Alternative UCITS platform under the umbrella Anteo UCITS. It currently hosts 3 funds: two fixed income relative value vehicles and one equity volatility arbitrage fund. The platform launched with 250MEUR of assets under management a...

GS Fund solutions, a 3rd party Alternative UCITS platform currently hosting 10 funds, is entering in a partnership with French asset management giant Amundi which will provide management, due diligence and monitoring services for the platform. GS Fund solutions is a part of the GS securities divi...

Rothschild Asset Management will launch an Equity Market Neutral UCITS in partnership with French boutique Perdurance Asset Management. The fund will be managed by Ivan Briery from Perdurance, who was the lead manager of the renowned Voltaire hedge fund. The fund will focus on Europe, selecting lo...

Parvest, a subsidiary of BNP Paribas Asset Management, announced the launch of a global equity Long/Short strategy called GEARS: Global Equity Absolute Return Strategy. The fund targets positive returns through market cycles. With the appetite for UCITS-compliant absolute return products continuing...

The next LuxHedge Alternative UCITS Seminar takes place in Geneva on Tuesday, March 27. After a plenary session on the Alternative UCITS market and trends, four Alternative UCITS fund managers will present their UCITS hedge fund strategies. ...

Investment boutique Muzinich & Co. has announced the launch of a Long/Short total return European credit strategy. The fund aims to generate attractive mid-to-high single-digit returns by investing in European credit markets in strong conviction trades. The strategy consists of a core long book comb...

Alternative Investment specialist Wellington will make its flagship multi-strategy fund Pagosa available in UCITS form via the Schroder GAIA platform. The strategy currently manages over 2BUSD in 9 underlying internal funds covering Macro, Relative Value, Long/Short credit and Long/Short equity. The...

In an interview with Finalternatives, Borut Miklavcic from LindenGrove Capital is reflecting on the potential impact of central banks gradually exiting from their extreme monetary policy stance. While the timing is highly uncertain, his baseline assumption is that this will lead to a rise in vola...

J8 Capital will launch their CTA strategy with a 5 year live track record in UCITS form. The fund is open for subscription and is scheduled to launch on Feb 18. The fund is intended for investors who seek greater portfolio diversification and new sources of return for savings and retirement product...

Sydney-based Morphic Asset Management will launch a Long/Short ESG fund on the Irish Trium UCITS platform. The fund targets absolute returns and employs a fundamental equity long/short strategy with ESG factors to generate alpha on both long and short positions ...

In the current market environment, many European investors are increasingly looking for alternative sources of returns. Offering a unique combination of hedge fund like returns in a liquid and regulated form, Alternative UCITS funds continued to increase their popularity with investors in 2017....

Agecroft Partners released their annual predictions for the hedge fund industry, based on interactions with fund managers and institutional investors. Below a quick summary of the most important findings and a link to the original LinkedIn post....

HFR’s Global Hedge Fund Index returned +6.0% in 2017, the best annual result since 2013. Performance was positive across a wide range of alternative strategies....

New York Hedge Fund manager Contour joins the Schroders GAIA platform to offer a long/short UCITS version of their tech focussed strategy. The fund aims for a low correlation with equity markets and targets to take advantage of the high dispersion of returns within the global technology, media, and ...

After a strong October, Alternative UCITS funds performed slightly negative on average in November. The LuxHedge Global Alternative UCITS index lost -0.13% during the month, bringing YTD gains to +2.16%. The total universe currently consists of well over 1400 funds, with 4 out of 10 posting gains in...

Performance of CTA’s continued to improve in Q3. After strong October performance recuperated previous year losses, the SG CTA index increased with +0.31% in November bringing YTD gains to +1.77%. For trend following strategies, long positions in equity indices continued to be the main performance...

GAM Investments will rebrand its GAM Star Alternative Fixed Income fund to GAM Star Absolute Return Macro fund. Focussing on macro themes, the fund will seek exposure to fixed income, currencies and equity indices while aiming for a low correlation with equity and bond markets. The investment approa...

We continue to see lots of new fund launches over the past month, adding 18 new funds to our database in November. A wide range of different strategies is covered, with a clear skew towards Alternative Risk Premia funds. Also the first Alternative UCITS ETFs from Amundi and JP Morgan are taken up....

Blackrock is launching the BSF Global Macro Opportunities fund, a long/short vehicle with exposure to a wide array of asset classes such as global equities, rates, credit and currency markets. It aims to offer an alternative to investors who are rethinking their allocations to equities and bonds, an...

Equity specialist Boston Partners will offer a UCITS version of their Global Long/Short strategy via the Goldman Sachs platform. The fund will pick stocks on long and short side, based on a bottom-up valuation analysis, momentum and proprietary quantitative-screening methods while aims to minimize g...

The euro, Brazilian real and U.S. dollar have all seen significant movement following political events this year. According to latest research from Preqin, this volatility drove down YTD performance for trend following CTA’s with -1.62% YTD sofar (in comparison: LuxHedge CTA & Managed futures UCIT...

Recent positive performance has strengthened investor confidence in hedge funds. From Q4 2015 to Q4 2016, the industry went through tough times and experienced 5 consecutive quarters of net outflows. This trend reversed beginning of 2017 with now a third quarter of net inflows. On a strategy level, ...

The latest Eurekahedge report clearly underlines that hedge funds are on the rise again. Performance was up 1.28% in October and YTD gains stand at 6.99%. 77% of fund managers are in positive territory for the year-to-date with almost two thirds posting double digit return figures. Also assets under...

October was the best month of the year so far for Alternative UCITS funds. The LuxHedge Global Alternative UCITS index advanced with +0.68%, bringing YTD gains to 2.29%. In line with previous months and years, investors keep increasing their allocations to Alternative UCITS funds. Assets Under Manag...

Following strong investor interest, Systematica Investments has launched a UCITS version of their Alternative Risk Premia strategy. Using a broad range of asset classes, the fund aims to harvest different well documented premia such as value, momentum and carry. It aims for annualized returns of 6...

Long only index ETFs and Smart Beta factor ETFs are a success story with investors. Looking forward, Alternative ETFs with long and short exposures to different asset classes might seem like a very natural next step for the ETF industry....

After two tough years, it looks like the hedge fund industry will post its best return since 2013. 80% of hedge funds are in positive territory and the eVestment aggregate index reached +7.12% YTD. With the exception of commodities and FX, all primary strategies are positive year-to-date....

Hedge Funds continued their upward trend with a +0.69% advance for the HFRX Global Hedge Fund index in October, bringing YTD gains to +5.15%. The biggest gains were for Macro/CTA funds, advancing +1.92%. In the slipstream of a rising stock market, Equity Hedge funds gained +0.79%. After a very good ...

How did Alternative UCITS perform in 2017? Did market growth keep up and what are the latest trends on the different strategies in this segment? In this video newsletter, LuxHedge CEO Tim Vanvaerenbergh gives a quick update on the Alternative UCITS market....

Private pension plans in OECD countries attained a record level of 32 trn EUR at the end of 2016. Pension asset growth has outpaced GDP growth in most countries with total pension assets even exceeding total GDP in many cases. Pension providers mostly invest directly in bills, bonds or shares but in...

Jupiter Asset Management has launched the Jupiter Global Levered Absolute Return Fund, a 2x leveraged version of their 1.3BGBP Multi Strategy Absolute Return Fund. The new fund started trading on Thursday October 19 and currently has approx. 46MGBP in assets under management....

Heptagon capital has partnered with New York based alternative investment manager Kettle Hill Capital Management to launch a US Long Short Equity fund on their Irish UCITS platform. Kettle Hill specializes in finding market inefficiencies in the small cap US stock universe and aims to generate super...

We just hosted our LuxHedge Alternative UCITS seminar in Brussels last week where a broad range of Benelux professional investors and media attended. On fund selector side, we welcomed pension funds, insurers, private banks, family offices, Fund of Fund managers and Insurance brokers, all very inte...

Alternative UCITS continue on their path of steady gains, with the LuxHedge Global Index advancing +0.27% in September, 1.60% YTD. The heterogeneity of different funds in the universe remains very large with a largest fund return at +9.25% and a worst return of -7.20% last month. ...

Digital marketing specialist Kurtosys has surveyed 300 marketeers in the asset management industry. Roughly two-thirds of respondents indicates that they regard content marketing as their most effective marketing tool. More than three out of five plans to increase content marketing investments in th...

The Alternative Investment Management Association AIMA has published a new edition of its due diligence questionnaire, available to AIMA members. For the first time, the questionnaire covers private credit and private equity strategies as well as hedge funds. It also integrates the formerly separate...

ML Capital has announced the launch of a new Multi-Strategy fund on its Montlake UCITS platform, in partnership with U.S. boutique manager Advent Capital Management. The Advent Global Partners UCITS fund will make use of relative value volatility, event driven and credit strategies while exploiting...

JP Morgan announced the launch of 2 new UCITS ETF’s. Both will following a systematic, rules based investment approach to capture different long/short risk premia. They are designed to bring the diversifying advantages of hedge fund strategies in a liquid and transparent product form....

HFR’s index for UCITS compliant hedge funds gained +0.48% in September and is now up +3.52% YTD. Equity Hedge strategies gained +0.93% with positive performance for Europe, Japan and Emerging Asia strategies. The Relative Value Arbitrage Index also posted positive performance mainly driven by ...

French boutique manager Karakoram launches the K2 fund, an absolute return strategy mixing convertible bonds with short transactions on equity markets. The equity exposure is kept market neutral, fluctuating between -30% and +30%. The fund will be managed with a 3% volatility target and aims to outp...

Last month, we added 10 new funds to our database, bringing the total to 174 new Alternative UCITS launches in 2017. The popularity of Alternative UCITS funds is still on the rise: on average, one new fund launches every business day....

Robeco’s 5 year outlook on expected asset returns shows bonds as currently very expensive, projecting an annual -2.5% return for the 10yr German bund and a mere +0.25% for worldwide high yield bonds. With central banks expected to take their foot off the pedal, their return outlook for most asset ...

Quaero Capital, who already run a long/short European Equities UCITS, have launched an Equity Market Neutral fund focussing on disruptive technologies and radical innovation. The fund has been seeded with 7MUSD and returned a bit more than 12% in a model portfolio running since Nov 2016 with bot...

A new AIMA paper zooms in on the CTA industry, highlighting the ability of many CTA funds to produce truly uncorrelated returns which lower volatility in well diversified portfolios. CTA’s are often seen as insurance products because of their tendency to outperform during market sell-offs and cris...

David Stemerman announced that he will wind down his hedge fund Conatus Capital to explore a run for governor of Connecticut. Conatus manages 1.6BUSD and the strategy just became available in UCITS format through the Schroders GAIA platform in June of this year....

UCITS funds registered net inflows of 174BEUR during the 2nd quarter of 2017. All long-term UCITS (i.e. UCITS excluding money market funds) showed positive inflows of 188BEUR, achieving the highest level since 2015 Q1. ...

After a tough start to 2017, Macro UCITS strategies began to recover during the summer months. In line with the broader hedge fund market, performance in this category was led by CTA / Managed futures funds progressing +1.06% during the month of August, still showing -2.19% YTD losses...

In its August market overview, Eurekahedge reports that almost all hedge fund strategies gained during the month with CTA/managed futures up 1.27% and macro funds up 1.17%. Emerging markets continued to outperform their developed market peers with India and Greater China leading the pack. Amongst de...

German investment firm RP Crest will rename its volatility fund “RP Vega” to “RP Gamma” on 15 September 2017. RP points out that gamma risk is the main risk of strategies that harvest the difference between realized and implied volatility....

AZ Fund Management, the Luxembourg-based asset management branch of Italian group Azimat, has renamed two of its Funds of Funds. The CGM Valor Bond Strategies has been renamed to CGM Alternative Multi Strategy Bond Fund. The fund invests in all types of fixed income strategies and will invest up to ...

We added 12 new Alternative UCITS funds to our LuxHedge database during the month of August. Notably 2 new Currency Arbitrage funds were added, a strategy that has not seen many new fund launches in recent years. Nearly all funds report prices and are tradable on a daily basis. Below an overview of ...

The alternative assets industry hit a record USD 7.8 trillion in AUM by the end of 2016. Hedge funds saw their assets hit a record $3.25tn despite net investor outflows through the year. The majority of investors reported a high satisfaction with the performance of their alternative assets....

LRI Group has partnered with a TAO Alternatives to launch an Alternative UCITS version of TAO’s investment strategy managed since 2007. The Opportunities Fund will be available to investors both in a UCITS and Luxembourg SIF form. The investment strategy avoids tail risk by adding long volatility ...

Investors sometimes question whether large positions by CTA’s are creating significant liquidity risks for people invested in CTA / Managed Futures Alternative funds. Specialist firm J8 Capital show in a blog that the total notional outstanding in derivatives is huge (USD 444 trillion) compared to...

AUM at the world’s 300 largest pension funds reached USD 15.7 trillion in 2016, which is an increase of 6.1% this year against a decline of 3.4% in 2015. The top 20 pension funds outperform their peers with a 7.1% growth because they are typically quicker to adapt to changing market environments a...

According to data released by HFR today, Emerging Markets Hedge fund capital increased to USD 213. 3 billion (+USD 7.5 billion for the quarter, net inflow USD 800 million) as global growth accelerates and investors’ risk appetite increases. The HFRI Emerging Markets (Total) Index recorded 12.6 pe...

Trium Capital has launched the Trium Opportunistic Equity Fund, an Irish-domiciled UCITS fund, on 17th August 2017. This is Trium’s third UCITS fund and it will adopt a fundamentally driven long/short strategy using bottom up research with a focus on special situations and opportunistic events acr...