The fund of hedge funds that are the most consistent tend to be run by experienced portfolio managers with either an equity market neutral stance or a convertible arbitrage emphasis
Portfolio diversification has always been an important concept for institutional investors. The problem has been how to find genuine diversification opportunities. One of the most interesting lessons to have emerged out of highly volatile markets is that hedge funds, used correctly, have provided genuinely non-correlated returns. Building a portfolio of hedge funds is not easy, and requires considerable knowledge and skill. The most obvious way for institutions to enter the market is via a fund of hedge funds, which provides ready-made access, due diligence and diversity. Research sho...
To continue reading this article...
Join Professional Adviser for free
Signup and gain exclusive members-only insights
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes
