Standard & Poor's (S&P) is warning investors to consider the markets before investing in a fund of h...
Standard & Poor's (S&P) is warning investors to consider the markets before investing in a fund of hedge funds.
Randal Goldsmith, fund analyst at S&P, said: "The recent market correction saw many fund of hedge funds fall more than equity indices.
"Fund of hedge funds implement asset allocation, which change more slowly than conventional, long-only funds as a result of long redemption notice periods and lock-up periods. Investors need to think carefully about market conditions despite a hedge funds' general aim for absolute returns at all times.
"It may be important to look at whether funds are showing more correlation over time and whether their portfolios are taking more exposure to equity long-short and macro compared with arbitrage and fixed income related strategies."
Latest news and analysis
Drip-feed. Blend. De-risk
£92bn transferred since 2015
Achievements, charity work and other happy snippets