Institutions
and individuals alike are increasingly becoming aware of the unique benefits
of this alternative asset class.
Hedge
Funds Reduce Your Risk
Potential
to reduce overall portfolio risk through an additional asset class
Hedge funds represent
a different way of managing money with generally low correlations to equity
and debt investments. Adding them to a portfolio of stocks and bonds is likely
to reduce overall portfolio risk.
Potential
to provide returns in both up and down markets
Hedge funds are designed for the potential to achieve the positive returns
in all market environments.
Potential
for superior risk-adjusted performance
Specialized managers are focused on very precise areas of expertise
Greater freedom and flexibility to take advanatage of investment opportunities
than mutual fund managers
Broader range of financial instruments at disposal
Focused
on absolute vs. relative performance
Hedge fund managers are only concerned with generating positive returns,
as opposed to benchmarking their performance against an equity index that
could end up in a negative postion.
Hedge fund
managers are paid by performance
Hedge fund managers' interests are aligned with those of the investor, often
with the managers' own capital invested.
Sophisticated
solution
Recognized by pension funds, banks, insurance companies and sophisticated
investors as a way to reduce portfolio volatility and potentially enhance
returns.
Many hedge
fund strategies have the ability to generate positive returns in both rising
and falling equity and bond markets.
Inclusion
of hedge funds in a balanced portfolio reduces overall portfolio risk and
volatility and increases returns.
Huge variety
of hedge fund investment styles - many uncorrelated with each other - provides
investors with a wide choice of hedge fund strategies to meet their investment
objectives.
Hedge funds
provide an ideal long-term investment solution, eliminating the need to
correctly time entry and exit from markets.
Adding hedge
funds to an investment portfolio provides diversification not otherwise
available in traditional investing.
