Reuters UK – Investors increasingly eager to tap into hedge-fund returns are spurring a flurry of public listings for such generally secretive investment vehicles.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
“There is demand (for listed hedge funds) for diversification purposes from traditional managers,” he added. “(Listing) opens up a different client base.”<\/p>\n