Chooseyour managercarefully

The primary aim of most hedge funds is to reduce volatility and risk while attempting to preserve capital and deliver positive (absolute) returns under all market conditions. Hedge funds use a diverse range of strategies to achieve this but it is vital to choose a good manager. Derek Doupe, associate director of alternative investments at Frank Russell, focuses on two diversified strategies for their hedge funds ' directional and non-directional. In a directional strategy, market movements direct the scale of returns. Non-directional strategies focus on relative value and strategies inc...