Reuters UK – Investors increasingly eager to tap into hedge-fund returns are spurring a flurry of public listings for such generally secretive investment vehicles.
Brevan Howard Asset Management, for one, said this week it plans to launch a closed-ended investment company, BH Macro. Other potential listings include UK-based Polar Capital Holdings, while U.S.-based Fortress Investment Group recently set an initial public offering.
Funds will list because their returns are easier to capture when investors can buy and sell shares quoted on a market, said Robin Bowie, founder and executive chairman of hedge fund firm Dexion Capital.
Investment banks also earn fees by floating the funds and portfolio managers are paid permanent fund capital and get a chance to build up a brand, he said. “They are both winners in that,” Bowie said in an interview with Reuters.
“There is demand (for listed hedge funds) for diversification purposes from traditional managers,” he added. “(Listing) opens up a different client base.”
