Financial Consultation

Hedge Funds

What are hedge funds?

Benefits of investing in hedge funds

Many hedge funds aim to deliver positive returns regardless of whether markets rise, fall or move sideways. That’s what distinguishes them from traditional ‘long only’ investment funds. 

One of the main advantages of hedge fund strategies is how they can be used to reduce risk. They generally invest differently to traditional funds, using a wider variety of instruments and techniques. For example, they might invest in a portfolio of stocks but also aim to protect capital in down markets. 

We believe they can be useful for investors as part of a diversified portfolio, particularly when markets are very volatile or correlated.

Investing in hedge funds has a number of potential benefits:

Ability to add alpha

Diversification  benefits

Can protect capital in violate markets

Invest flexibility and without benchmarks constraints

“We hire the best investment managers and allow them full flexibility to develop their strategies and achieve the best returns for their areas of expertise”

What are the risks?

We believe that hedge fund strategies offer great potential for investors. There are risks however, and it’s therefore important to find an experienced manager to manage these.

These strategies may use derivatives, or include the use of leverage, which could amplify losses in certain market conditions.

Investments in fixed income may be subject to the default/credit risk of issuers, interest rate risk as bond prices move inversely to changes in interest rates, and liquidity risk. Investing in higher-yielding or non-investment grade bonds might mean the risk of the issuer defaulting on the capital repayment is higher.

These strategies could also invest in emerging markets, where investments can be higher risk and more volatile, or denominated in a foreign currency meaning a change in exchange rates could affect their value.

Past performance is not a guide to future performance. The value and income of an investment can fall as well as rise and you may not get back the amount originally invested.

WAYS TO INVEST

 

Hedge Fund Equities

Hedge Fund Multi Strategy

We believe that hedge fund strategies can offer valuable benefits to equity investors. They have the potential to outperform the broader market, diversify portfolios and reduce risk.

We offer two types of hedge fund equities strategies: market neutral and directional.

Equity market neutral

Our equity directional strategies aim to achieve long-term capital growth and to protect capital in down markets. They are long/short strategies but, unlike our market neutral strategies, do not aim to reduce all exposure to the market. We offer three strategies, focusing on: EuropeE, Asia, as well as a global strategy.

Multi-Strategy market neutral

By seeking to maintain low market risk, our multi-strategy market neutral approach can help investors secure returns that are uncorrelated to the movements of bond and stock markets. Used as part of a wider, diversified portfolio, we believe it can provide an improved risk-adjusted return whilst also helping to protect capital during periods of market stress.

 

We have managed funds with long/short investment approaches since the 90s. Over time, we have expanded our range of hedge fund strategies across both equities and fixed-income securities.

Our experts

New York

Hedge Funds

ASW

+1 332 205 6058

info@alpha-sw.com