A working paper on Ucits regulation has found no conclusive evidence that less regulated hedge funds outperform alternative Ucits funds on a risk adjusted basis, even though they find some cross-sectional evidence.

The paper was published by Nils S. Tuchsmid and Erik Wallerstein from the Haute Ecole de Gestion in Geneva, and Louis Zanolin from NARA Capital.

The working paper is one of the first to evaluate and compare the performance of hedge fund-like strategies wrapped under the Ucits regulation with less regulated hedge funds.

The authors found a significant difference in level of risk between hedge funds and alternative Ucits funds with the latter bearing less risk.