We have been using hedge funds in client portfolio’s since our RMB days. Unfortunately taughted to be for the sophisticated and ultra rich investor many investors have missed out on the added diversification that hedge funds brings to a portfolio.
We are partial to hedge funds that protect capital. This means gaining less if the marker rallies but loosing less if the market corrects. This strategy brings long term returns at a reduced risk compared to the market. We do think that hedge funds are suitable in the current volatile markets.
In the webinar below Cy Jacobs explains how a hedge fund works and what to look out for (the video is on YouTube).