Will hedge funds fail the Ucits challenge?

Do hedge fund managers really have the relevant skills to successfully manage regulated, Ucits III products?

The ‘Ucits hedge fund challenge’ admittedly lacks the zing of ‘the Pepsi Challenge’. But the debate around whether hedge funds are up to running regulated products is as much about liquid products and who does it better as Coca versus Pepsi was. Few hedge funds foresaw problems running onshore, Ucits III-compliant products. Marshall Wace, Brevan Howard, Gartmore, Cazenove Capital Management and Majedie Asset Management were among many hedge funds which launched Ucits-compliant portfolios, and all could justifiably trumpet their short selling skills. It was their long-only peers ...