Why Investors Should Allocate to Hedge Funds
For the past 65 years, hedge funds have served as a means of guarding against or minimizing financial loss. Whether during a bull or a bear market, this alternative investment seeks to hedge an investor's bets, tempering the highs and the lows.
With assets at a record $2.82 trillion, hedge funds today are obviously an integral part of the portfolios of investors, including high-net-worth (HNW) individuals, pension funds and institutional investors. But with the equity bull market in its sixth year and bonds again producing positive returns, some pundits are questioning the wisdom of continuing to allocate capital to hedge funds. Why Investors Should Allocate to Hedge Funds, a new white paper issued by SkyBridge Capital, articulates – in both a simple explanation and a more complex one – the firm's viewpoint for why hedge funds should remain an attractive asset class. Topics covered in the white paper include: - Why hedge funds: The simple explanation - Why the negative bias? Long/Short Equity and Macro struggles - Why hedge funds: The more complex explanation