Hedge Fund and Alternative Strategies Advice

Skilled managers of hedge funds and alternative strategies continue to deliver investors value through risk-adjusted outperformance on an absolute basis and also relative to traditional benchmarks.

Hedge funds and alternative strategies can deliver investors downside protection, alternative income streams and/or uncorrelated sources of return to better diversify their portfolios.  Relative to traditional long only portfolios, alternative funds tend to outperform in highly uncertain markets (through strategies such as short selling).

Alternative equity funds available

• 130/30 strategies (market exposure funds)
• Equity income strategies
• Market neutral funds
• Multi directional funds (beta variable)

Non equity alternative funds

• Global macro funds
• Commodities Trading Accounts

Risks

When analysing hedge funds it is paramount that the following risks are considered.

• Market Risk Management
• Fund custody and prime brokerage issues (counterparty risk)
• Liquidity
• Operational risk
• Leverage risk