Fund of hedge funds manager 3A believes Ucits III will complement traditional hedge funds, not replace them.
The company has recently launched the dynamic Ucits III fund of hedge fund, aimed at discretionary asset managers and high-net-worth IFAs.
he Ucits III structure has obvious attractions such as liquidity, transparency and greater regulation but 3A sees this structure as a halfway house rather than a threat to traditional hedge funds.
Chief executive officer Jean Keller says: “I think Ucits III is coming over and above traditional funds of hedge funds. What we are seeing is the emergence of a middle ground. 130/30 funds gave us hope in achieving this and I believe Ucits III will be a route if investors want to be hedge fund light.”
3A says the universe of such hedge funds is increasing rapidly, with most of the bigger hedge fund managers positive about offering this type of product.