Alix report reveals growth in hedge fund platform AUM

Alix Capital’s latest quarterly survey has revealed assets under management on Ucits hedge fund platforms have increased by 14.3% since the start of the year.

The firm decided to include Ucits hedge fund platforms in its quarterly Ucits hedge fund analysis for the first time, having noticed an increased appetite among investors towards these types of vehicles.

Hedge fund platforms now make up 7% of the total assets in Ucits hedge funds. The most represented strategies among platforms are long/short equity, macro and CTAs, which make up around 30%, 17% and 16% of total AUM in onshore platforms, respectively.

This reflects the dynamic in the single strategy HF space, where the most popular strategies in the first half of the year were commodity trading advisers and macro hedge funds, gaining 26% and 17% in assets respectively.

The largest Ucits hedge fund platform covered by Alix is DB Platinum, which has €2.1bn in assets under management.

Louis Zanolin, CEO of Alix Capital, says: “We have added platforms to our quarterly research as it represents an important part of the Ucits hedge funds landscape and this is likely to continue growing as the market evolves.”

Platforms are particularly important for US based managers, as a third of all hedge fund platform managers are based in the US. This compares to only 3% for the broader universe.

Zanolin said: “For non-European hedge fund managers in particular, platforms provide a cost effective and “infrastructure light” method of tapping into the Ucits sector and reaching a new investor base.”

Yet despite the increased investment appetite for platforms signalling a potential change in attitudes towards hedge funds investing, assets invested in single strategy funds are still growing at a faster pace. Total assets managed by single Ucits single strategy HFs are up 18.5% year to date.

Most of the money has been taken in by the largest hedge fund managers. All 10 largest Ucits hedge funds groups increased their assets under management year to date.

The biggest jump in inflows was achieved by Standard Life, which managed to grow its assets by 40% to €15.6bn.

The report from Alix covers 791 single manager alternative Ucits funds and 80 alternative Ucits fund of funds in total. It looks at platform analysis, strategy breakdown, fund and adviser location, liquidity, asset flows, assets under management and performance.

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