Slowly, HFs In Germany Are Catching On

Since early 2004, with changes in legislation, Germany has been struggling to give its domestic hedge fund industry a shot in the arm. Finally, according to Hedgeweek, there appears to be signs of life, even if the activity is far from robust. Hedgeweek reports that both investors and providers are warming up to hedge funds. “The mistrust of hedge funds is disappearing,” Jorg Sittman of Citigroup Investment Deutschland, a top third-party HF service provider told Hedgeweek, as he notes that the economy is stronger and the government has seen an “unexpected” increase in tax income. In addition, says Sittman, there is better understanding of what German law requires regarding tax transparency from providers, which have found the demands not as taxing as originally thought. While Germany waits for the industry to take off, many market players have come to at least one conclusion: It’s better to form a hedge fund as a Master KAG, which would handle all administrative matters, rather than create an HF firm.