Are UCITS doomed to be the Cinderella sisters of hedge funds, with diluted returns and negative tracking error?
It all depends how they are structured. There are examples of UCITS funds that are underperforming, albeit while offering far better liquidity and transparency. At DB, hedge fund managers have access to the most advanced ways of implementing their strategy in a UCITS fund to minimise tracking error. We have managed account platforms, as well as a very sophisticated prime brokerage platform. With CTA and macro managers, for example, our managed account platforms provide various types of UCITS structuring capabilities that most of the other providers do not offer. For example, db funds works very closely with the dbSelect team led by Hans Feder. dbSelect is a unique and extremely efficient set-up that currently allows futures/options managers to operate their strategies in a UCITS compliant format. We also have very successful initiatives in UCITS with our db X-markets platform, run by Stéphane Farouze, and our Global Prime Finance business. Q: Does the platform offer investors the benef