Research & Articles

LuxHedge insights linked to academic research

How to select outperforming Alternative UCITS funds?

Do outperforming managers exist or are they really just lucky managers who got a fortunate roll of the dice? How can we even define and measure manager talent? Assuming we found a model to spot outperformance, how does one build optimal portfolios of Alternative UCITS funds? An upcoming academic publication “The Alpha and Beta of Equity Hedge UCITS Funds – Implications for momentum investing” by Nabil Bouamara (KU Leuven) et al. goes in great depth answering these questions for Equity Hedge Alternative UCITS, we’ll provide a short synopsis here of the methodology and main results.

What are Alternative UCITS and how to invest in them?

The purpose of this paper is to provide some insight in the European Alternative UCITS market. Alternative UCITS are collective investment funds that comply with rather stringent European fund regulation whilst exhibiting an investment management approach that is different from traditional asset management funds. Positive performance in all weather with a good trade off to risk is the aim. Attractive as a separate asset class in a portfolio? Let us try to answer this question in what follows.