The increasing popularity of hedge fund investment in a bearish environment has generated a herd mentality and it needs to be emphasised that funds are event driven and past performance is a poor guide to future prospects
If you are looking to invest in hedge funds today you need to adopt a cynical approach. It is my opinion that 90% of the industry is based on past performance, optimisation and quantitative analysis. Each one of the following aspects is crucial to your investment decision: • Are your objectives realistic? • Does your fund of funds manager add value? • What are the challenges facing the industry as it grows? • Why should anyone invest in hedge funds? Everyone thinks about hedge funds as a fourth asset class and consultants like to wrap everything up into a pretty package. B...
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
