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6 thoughts on “BlueCrest to Close UCITS Fund

  1. No kidding – what does “tracking error” mean? Corporate smooth talking!

    Doesn’t the SEC play a role in transparency? Oh, that’s right, they totally screwed up on many Ponzi schemes…can’t trust them.

    Merrill Lynch? Well, can’t trust them.

    Watch the price for the true story – “Priceless”.

  2. They should be able to track the offshore, non-restricted fund but they can’t due to UCITS regulations. But that’s very unprofessional, they should have seen it coming.

  3. On the positive side a lot of hedge funds can get round the stupid european directive of having to set up an office in every country in europe they wish to distribute into. Also UCITS 3 allows retail investors access to hedge funds , and institutional investors greater transparency to invest onshore.

    – even when you have a managed futures account there will always be a tracking error, compared to the official published result the CTA provides.. Sometimes they can improve on the published result, sometimes they are worse… But at least you know, at least it’s transparent, at least they put their own hands up..

  4. After reading a few relevant lines in this press release, I think this is not an issue for systematic traders that aren’t involved in index-related trading. This is interesting as UCITS have been on the rise.

  5. UCITS is basically an EU directive which allows investors to access the offshore fund via an ONshore / regulated and, in most cases, tax efficient structure. People want the performance of the offshore fund but don’t want the “risk” of the lack of regulation. Can sometimes also just be laziness from a due diligence perspective. UCITS allows something like 10% max in commodities so most CTAs set up an index and use a total return swap to replicate the index. The tracking error means the performance of the regulated UCITS version may not mirror the offshore version….perhaps for this reason.

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