BlueCrest Capital Management is to float a feeder into one of its most successful hedge funds on the London Stock Exchange before April, helping the listed hedge fund market return to levels of activity more typical before the financial crisis.
Single manager funds have proven more robust through both the global and eurozone crises.
IPOs have come from managers including Brevan Howard, CQS, Neuberger Berman and BlackRock, and significant follow-on fundraising by BlueCrest AllBlue.
Listed single manager funds trade on a weighted average discount of around 6%, far narrower than the average 15% discount for listed funds of funds. Four funds trade at NAV, or at small premia to their NAVs.
Tom Skinner, head of research at Dexion, said: “The listed alternatives sector and industry is continuing to grow, and we have seen substantial fund raising in alternative income products such as senior loan funds, CLOs and infrastructure. Investors’ focus remains on yield products – so infrastructure and credit, for example.
“However, investors are also interested in single manager hedge funds. If you give investors something that is uncorrelated and which has a very strong institutional proposition investors are still open to allocating. With the retail distribution review in the UK, the outlook for the listed investment company universe is good.”