Nothing comes for free

28 October 2010 By Neil Unmack Follow @unmack1

The European hedge fund manager is closing a $630 million onshore fund after a 3.5 percent tracking error compared to the offshore fund it was supposed to mimic. The move shows how tight regulation may stop the fastgrowing, onshore sector matching oldschool offshore funds.

This content is for Subscribers only

To access full Breakingviews.com content you must be a subscriber. Please use the following link to request a trial.

Context News

BlueCrest Capital Management, a European hedge fund manager has decided to liquidate its $630 million Bluetrend UCITS fund amid concern it may perform poorly compared with the offshore fund it was based on.

UCITS funds are regulated investment vehicles that can be widely sold across Europe because they abide by strict rules on leverage and portfolio composition. Some $131 billion of hedge fund assets were managed through UCITS vehicles as of September, according to Eurekahedge.

BlueCrest manages $23.9 billion of assets. The Bluetrend UCITS fund has delivered returns of 10.9 percent since its launch in December 2008. The Bluetrend offshore fund delivered 3.5 percentage points more during the same period.

UCITS stands for Undertakings for Collective Investments in Transferable Securities.

Email a friend

Please complete the form below.

Required fields *