In this video interview, Wilhelm Zehender, a fund analyst at VP Fund solutions in Liechtenstein, explains why he has started investing in alternative Ucits funds alongside his traditional hedge fund portfolio. He also reflects on the returns he has made on his investments…
“You see that liquid alternatives have underperformed hedge funds by more than 50% over the last 10 years. That has to do with the costs of higher liquidity and transparency,” says Zehender.
This trade-off between returns on the one hand and transparency and liquidity is not necessarily a problem for him though. “Transparency is so important today. The liquid alternatives sector is still so small compared to the hedge fund industry, so I think this trend will persist.”
In part two of this interview, Zehender lines out how much of his client’s portfolios are invested in absolute return funds, and how he keeps hunting for new strategies as more and more hedge fund managers set up funds in Ucits format.