{"id":1112,"date":"2025-07-15T08:49:27","date_gmt":"2025-07-15T08:49:27","guid":{"rendered":"https:\/\/iqeq.com\/hk\/insights\/the-rise-of-smas-in-hedge-funds-trends-and-considerations\/"},"modified":"2025-08-26T07:52:17","modified_gmt":"2025-08-26T07:52:17","slug":"the-rise-of-smas-in-hedge-funds-trends-and-considerations","status":"publish","type":"post","link":"https:\/\/iqeq.com\/hk\/insights\/the-rise-of-smas-in-hedge-funds-trends-and-considerations\/","title":{"rendered":"The rise of SMAs in hedge funds: Trends and considerations"},"content":{"rendered":"
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By Philippa Allen, Managing Director, Regulatory Compliance, Asia<\/em><\/p>\n

The hedge fund industry has witnessed a significant rise in interest and adoption of separately managed accounts (SMAs). Since 2010, assets under management (AUM) invested in hedge funds via SMAs have increased approximately sixfold, more than doubling as a percentage of total hedge fund assets. This trend is being driven by traditional allocators, asset owners, and multi-manager platforms seeking greater control and transparency over their investments.<\/strong><\/p>\n

The momentum has accelerated considerably in recent years. Globally, according to media sources, hedge funds experienced a nearly 50% increase in investor requests for investment via SMAs in 2024 alone. This surge in demand reflects a broader shift in how hedge fund launches are being structured, with many of the largest launches now anchored by platforms rather than traditional seeders. Indeed, the SMA route is increasingly replacing seeders as the dominant form of anchoring new hedge fund strategies.<\/p>\n

SMAs vs. other investment structures<\/h2>\n

A key discussion point revolves around defining SMAs and distinguishing them from similar structures such as the \u2018fund of one\u2019 (a hedge fund vehicle created for a single investor).<\/p>\n

Unlike a blind pool fund, an SMA is independently established for a single investor and separately managed by the manager, with the SMA investor retaining beneficial ownership and oversight of underlying assets. By contrast, a fund of one retains ownership of assets within the fund structure and the manager has the discretion to manage and invest assets of the fund, with investors playing a passive role.<\/p>\n

Benefits of SMAs for managers and investors<\/h2>\n

SMAs provide distinct advantages for both managers and investors.<\/p>\n

For managers<\/strong>, key benefits include:<\/p>\n