The Assetizer · 26 May 2025
Why Hedge Funds Are Switching to Actively Managed Certificates
Hedge funds are increasingly turning to Actively Managed Certificates (AMCs) as a faster, leaner alternative to launching traditional fund vehicles. AMCs allow managers to structure single-strategy products, test investment ideas, and gain exposure to alternatives, all without the licensing, cost, or complexity of a regulated fund setup. This article explains what an AMC is, why hedge funds are adopting them, and how GenTwo supports fund managers with institutional-grade structuring and global distribution capabilities.
Hedge funds are adopting Actively Managed Certificates (AMCs) as a smarter alternative to traditional fund structures. AMCs offer faster time-to-market, lower operational costs, and greater flexibility in implementing dynamic strategies. They’re particularly useful for structuring single-strategy products, testing new investment theses, and gaining exposure to alternative asset classes without launching a full fund.
Explore GenTwo's AMC offering for hedge funds
Table of Contents
1. What is an Actively Managed Certificate (AMC)?
2. Why hedge funds are turning to AMCs
3. Key advantages of AMCs vs traditional funds
4. Common AMC use cases for hedge funds
5. How GenTwo supports hedge fund structuring
6. Conclusion
What is an Actively Managed Certificate (AMC)?
An AMC is a bankable financial instrument that wraps an actively managed investment strategy into a security with its own ISIN. Unlike traditional funds, AMCs do not require a fund vehicle, licensing, or complex onboarding. They offer a flexible legal and operational structure that allows the strategy manager to implement and adjust positions within a predefined universe.
Why hedge funds are turning to AMCs
Hedge funds increasingly face pressure to reduce costs, accelerate deployment, and offer more specialized strategies to investors. Traditional fund launches are capital-intensive and time-consuming. AMCs offer a streamlined solution with:
• Faster setup times (often days instead of months)
• Lower entry capital requirements
• Off-balance sheet structuring
• Customizable wrappers for single strategies
• Global bankability via Swiss ISINs
Key advantages of AMCs vs traditional funds
| Advantage | Actively Managed Certificate (AMC) | Traditional Fund Setup |
| Time to Market | Days | 3 - 6 months |
| Licensing | Not required | Required (regulated fund structure) |
| Regulatory Complexity | Low (SPV-based structure) | High (cross-border + fund jurisdiction) |
| Custom Strategy Wrapping | Fully customizable | Limited to predefined structure |
| Cost Efficiency | Lean, performance-based setup | High admin + compliance costs |
| Bankability | Yes | Yes |
How GenTwo supports hedge fund structuring
GenTwo provides a dedicated structuring framework for hedge funds to issue Actively Managed Certificates with:
• Full access to an AMC issuance platform
• Swiss ISINs and global bankability
• Choice of counterparties and custodians
• Legal, operational, and onboarding support
• Fast time-to-market with compliant setup
Common AMC use cases for hedge funds
• Launching single-strategy wrappers without creating a new fund
• Offering co-investment vehicles for select LPs
• Structuring alternative asset exposure (e.g. digital, private credit)
• Running trial strategies before full fund launch
• Creating custom mandates for institutional clients
Hedge funds are turning to AMCs to modernize their product structuring. These certificates offer:
• Shorter time-to-market
• Lower cost and operational friction
• Greater strategic flexibility
• Global distribution via ISINs
If you're a hedge fund looking to launch a new strategy, test a niche theme, or serve specific investor mandates, AMCs might be your fastest, leanest path forward.