Switzerland Hedge Funds 2011

By Simon Gray - As much as any country, Switzerland has observed with trepidation the European Union’s painful progress toward regulation of alternative investment fund managers. However, now that the EU has finally agreed on the top-level outline of the Directive on Alternative Investment Fund Managers, the country’s fund industry is gearing up to fall into line with the new rules, which will become part of the 27-member union’s law around the middle of 2013. »

By Ger van Nijkerken - Switzerland’s position at the heart of Europe means that the country’s alternative investment industry tends to be pressurised to follow European Union regulation, a situation that presents both challenges and opportunities. A new white paper issued by SwissAnalytics and Advent Software, entitled Trends in Alternative Investment Regulation – Key Issues for Swiss Managers, argues that single-strategy managers targeting EU investors may finds Ucits structures best suited to their requirements. »

By Michael Appenzeller - Over the past two years Switzerland has been a focus for hedge fund managers re-examining the location of their business and operations. The country is now among the most attractive jurisdictions in Europe to establish some if not all of the hedge fund value chain, because of not only tax advantages but an entrepreneurial culture rooted in its history as a global financial hub. »

By Georges Boivin - Switzerland is the world’s second-largest market for funds of hedge funds after the US, and approximately five per cent of all assets under management are invested in hedge funds, including USD200bn in funds of hedge funds, while the country accounts for around a third of total global assets invested in funds of funds. That means that for the hedge fund services sector, the market offers great growth potential – but maintaining a close relationship with fund manager clients is more important than ever before. »

By Simon Gray - Switzerland is better known as a source of capital for the hedge funds, with its world-class private banking and wealth management industry, than as a hotbed of alternative fund managers. However, this largely low-profile sector has found itself more in the spotlight over the past couple of years as the Alpine nation emerges as a possible domicile for fund management firms and their principals seeking an alternative to London. »

By Lorcan Murphy - The hedge fund industry has been marked by fundamental changes in the attitudes and preferences of investors over the past three years. High new worth clients whose hedge fund investments experienced drawdowns in 2008 have become more discerning and cautious. Managers now must be able to explain clearly why the losses will not be repeated and about the measures they have employed to manage counterparty and investment risk. »