Regulation and its Impact on Hedge-Fund Return Distribution Characteristics

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Type and Duration

FFF-Förderprojekt, January 2009 until December 2012 (finished)

Coordinator

Chair in Business Administration, Banking and Financial Management

Main Research

Wealth Management

Field of Research

Banking and Finance

Description

Hedge-Funds (HF) are well known alternative investment undertakings using alternative investment strategies. Recently, these alternative investment undertakings heated up discussions on regulatory issues such as disclosure and transparency.

Our objective is to show, if any specific distribution characteristics of various HF domiciles exist and if a comprehensive regulation of HF does refer or does not refer to specific regulation characteristics.

Intended goals of the project are (1) to gain a better understanding of alternative investment undertakings regarding HF specific regulations, (2) to provide policy makers with arguments towards a comprehensive national regulation for HF and (3) to advise asset managers and fund promoters in their choice of a HF domicile.

Practical Application

This research project has a particular significance for Liechtenstein as a growing fund domicile and a place with a good reputation in the professional advisory service. Our project supports the ongoing development of Liechtenstein as a fund domicile by offering investment vehicles to use alternative investment strategies like HF.

In addition we are able to contribute to the ongoing discussion of alternative investment undertakings in Europe.

With our findings Liechtenstein can improve its regulatory framework to become a more competitive HF domicile. This is strengthening both Liechtensteins postion as a growing fund domicile for alternative investment undertakings and its professional advisory service in private wealth management.

Keywords

Public finance

Principal Investigator

Prof. em. Dr. Marco J. Menichetti

Project Collaborator

Dr. Marcel Vaschauner, MBA

Sponsor

  • Centrum Bank AG
  • Liechtensteinischer Anlagefondsverband
  • Forschungsförderungsfonds der Universität Liechtenstein

Publications

  • Menichetti, M. J., & Hilty R. (2009). Hedge Fund Classifications and Portfolio Construction. Paper presented at the Finance and Accounting, International Scientific Conference Proceedings, Riga.

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  • Vaschauner, M., & Menichetti, M. (2009). Mergers and Acquisitions by Large Financial Investors in Germany - What does the market believe?. Presented at the International Scientific Conference Paper: Finance and Accounting - Theory and Practice, Development and Trends, Riga.

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