Alpha Finance Advisors » lock ups http://www.alphafinanceadvisors.net/blog Independent portfolio analysis to better understand, manage and articulate risk Mon, 11 Feb 2013 11:02:19 +0000 en hourly 1 http://wordpress.org/?v=3.0.1 Just a few points on UCITS http://www.alphafinanceadvisors.net/blog/just-a-few-points-on-ucits/ http://www.alphafinanceadvisors.net/blog/just-a-few-points-on-ucits/#comments Mon, 07 Mar 2011 13:04:19 +0000 admin http://www.alphafinanceadvisors.net/blog/?p=144 Continue reading →]]> I sat in a seminar the other day where UCITS and more specifically Alternative UCITS were discussed and it became quite clear to me that there were a few misconceptions flying around. I just wish to clarify a few points:

- Purpose: the UCITS regulation was introduced to passport funds that are intended to retail distribution. No surprises that it does not naturally fit any type of strategies

- Liquidity: UCITS funds do not have to offer daily liquidity. Weekly or bi-monthly are perfectly acceptable

- Risk reporting: UCITS funds have to make sure they comply with the portfolio and risk rules as defined by the directive. They need to produce and store documents that prove this daily compliance. It is also critical to have some procedure in place to make sure breaches are handled as regulation requires and eventually reported as the case may be.

- Liquidity: is not 100% guaranteed with UCITS; they can suspend redemption and “gate” if circumstances dictate

- Security: some UCITS funds have turned sour…. there is no such thing as a total guarantee.

]]> http://www.alphafinanceadvisors.net/blog/just-a-few-points-on-ucits/feed/ 0 The long lock up conundrum http://www.alphafinanceadvisors.net/blog/the-long-lock-up-conundrum-2/ http://www.alphafinanceadvisors.net/blog/the-long-lock-up-conundrum-2/#comments Thu, 15 Jan 2009 16:58:37 +0000 admin http://www.alphafinanceadvisors.net/blog/?p=96 Continue reading →]]> Introduction

With many ‘star names’ in the hedge fund industry being able to use their clout to lock up investor assets for lengthy periods, the notion that illiquidity is a price worth paying for better performance should be scrutinized. This paper will analyse how the performance of ‘long lock up’ funds compares to the performance of their cousins who do not impose such punitive conditions on investors whilst assessing comparative performance in difficult market conditions.

Funds examined

For the purpose of the paper, the definition of long lock up fund applies to hedge fund holdings with a liquidity of greater than 2 years. Since data on long lock up funds is not so widely available, we could only use 8 long lock up funds held by our clients for the paper. Details of the funds are listed below with the fund names withheld to preserve confidentiality agreements Analysis long lockup performance

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