Eurekahedge - Other Products and Services
Fund Of Private Equity Fund Database Free Trial

Hedge Fund News

EH Report

Manager Interviews

‘Mizuho-Eurekahedge Index’ goes live

Asian Hedge Fund Awards

Industry Events Calendar

Fund Launches and Closures


Eurekahedge Hedge Fund Indices

Hedge Fund Monthly
Overview of 2009 Key Trends in UCITS III Hedge Funds


March 2010


One of the key developments in 2009 has been the surge of interest in the UCITS III framework among alternative investment managers. Against the backdrop of the global recession and some major financial scandals, there have been increasingly vocal demands for greater transparency, risk management and regulations for hedge funds. In this situation, an increasing number of managers have started looking at the UCITS III platform as a way to not only meet the requirements of existing investors but also to market their funds to new clients who have traditionally been sceptical about, or unable to, invest in unregulated products while at the same time, utilise their unique alpha-generating strategies.

Since last year, Eurekahedge has been closely monitoring this new class of alternative vehicle and is currently tracking 400 UCITS hedge funds1 in its database. The 2009 returns of the Eurekahedge UCITS III Hedge Funds Index (beta version) stand at a healthy 14.1%. Additionally, according to our estimates, there were 97 new UCITS III-compliant hedge funds launched during the year, bringing the total size of the sector to US$52 billion.

Overview of UCITS III Hedge Funds Industry

UCITS, which is an acronym for Undertakings for Collective Investments in Transferable Securities, is a set of directives passed by the European Union member states to allow cross-border investments as a step towards financial services uniformity. The original regulation was later upgraded to expand the range of activities that management companies are allowed to undertake and to include more asset classes and a broader range of derivative instruments. The expanded range of products and instruments that managers can use makes the UCITS III framework quite adaptable to various hedge fund strategies.

Although the UCITS III directive has been in effect since the early 2000s and has been amended to include various new financial instruments over the years, it was only recently (due to the financial crisis) that major players in the alternative investment community have started showing greater interest in this sector. In reality, UCITS III provides the middle ground between hedge fund managers, who are constantly looking to use non-traditional strategies, and investors, who are looking for greater risk management, transparency and liquidity.

The salient feature attracting hedge fund managers is the ability to use their preferred investment techniques in a regulated environment, which, in turn, helps them market their fund to new pools of capital and  satisfy the demands of their current investors. The strategies available to managers include…


The full article is available in the EH Report accessible to paying subscribers only.

Subscribers may continue to login as usual to download the full report and non-subscribers may email to enquire on how to obtain the full research report.



Footnotes :

1 Currently, there are 249 funds listed in the Eurekahedge database and we are in the process of collecting information from 141 UCITS III hedge funds.




If you have any comments about or contributions to make to this newsletter, please email


Industry News
  The Eurekahedge Report - October 2014  
  Asset Flows Update for the Month of September 2014  
  Hedge Fund Performance Commentary for the Month of September 2014  
  2014 Key Trends in North American Hedge Funds  
  2014 Overview: Key Trends in Funds of Hedge Funds  
  The Billion Dollar Interview with Constellation Asset Management  
  CSRC New Regulations on Private Investment Funds  
  It's All There: Post-AIFMD Fundraising Options in Germany  
  Singapore: Opportunities for Islamic Finance  
  The New Deal: Hedge Fund Management Fees Are Subject to Social Security Taxes  
Eurekahedge Hedge Fund Manager Travel Plans

Copyright © 2014 Eurekahedge Pte Ltd.
Use of this site is subject to our terms and conditions of use.