Non-Ucits hedge funds show lower volatility and risk

graph up downNon-Ucits hedge funds tend to have both lower volatility and tail risk, while broadly outperforming their Ucits counterparts, research from Edhec-Risk Institute suggests. Volatility and tail risk is often lower among non-Ucits funds owing to hurdles to the transportation of risk management techniques in Ucits funds. Ucits hedge funds, however, have more favourable liquidity terms, measured on a total risk-adjusted basis. The research suggests that the domicile of a fund is an important indicator of likely performance. Funds domiciled in Europe typically delivering lower risk-adjusted returns, compared with those domiciled in other regions. The Edhec-Risk Institute analysed an aggregate hedge fund dataset that consisted of more than 24,000 unique hedge funds. Its research is drawn from the Newedge research chair on Advanced Modelling for Alternative Investments at Edhec-Risk Institute. ©2013 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.