Umbrella structures warning

Fund managers considering setting up a range of single strategy hedge funds should think hard before using umbrella structures if they want different boards of directors for the different sub-funds' strategies, according to Iain Cullen from London lawyers Simmons & Simmons.

Cullen said the classic form of umbrella structures was an offshore fund, with sub-funds beneath each with a trading subsidiary and a UK investment manager below that subsidiary. To avoid contagion risk in leveraged hedge fun