Baring Asset Management (BAM) has increased its hedge fund exposure from 20% to 25% across its multi...
Baring Asset Management (BAM) has increased its hedge fund exposure from 20% to 25% across its multi-manager funds.
Close Hedge Managed and Thames River Hedge Plus funds have been added to BAM's Extended Risk, Optimum Risk and Reduced Risk multi-manager portfolios. The group is also considering the possibility of investing into a third hedge fund.
David Coombs, director of multi-manager investments at Barings, said: "A 25% allocation to hedge funds is not what many investors will expect to see in a typical multi-manager portfolio but we are confident in our decision to increase the weighting.
"Given the rising market volatility and high merger and acquisition activity, the current environment is improving for hedge fund managers and the multi-manager funds are well placed to capitalise on this.
"We take a targeted risk investment approach, which involves targeting the level of volatility in order to achieve consistently above average returns. Unlike other multi-manager products we manage absolute return funds with no benchmark constraints, so we are able to take strong positions while ensuring our portfolios contain a combination of assets that are consistent with a specified level of risk."
Coombs said BAM's multi-manager investment strategy was based on the understanding that targeted risk solutions offered investors potentially higher returns for a lower level of volatility. The managers adopt a top-down asset allocation method to try and further enhance returns and the company uses pooled funds to provide asset allocation, claiming this gives it the ability to buy and sell entire asset classes quickly and easily. |
Close Hedge Managed and Thames River Hedge Plus funds added to BAM multi-manager
Exposure to hedge funds increased from 20% to 25%
BAM considering investing in a third hedge fund
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