BusinessDay –
Presenter: Lindsay Williams | Guest(s): Simon Peile |
When volatility in the markets gives rise to a difference between options hedging may be possible. Simon Peile, head of African Harvest Alternative Investments, is on the line to talk about hedgefunds
LINDSAY WILLIAMS: Is it a fair assessment to say that during times of uncertainty – and let’s face it these are fairly uncertain times given the PPI data coming out of the US today – people should belooking at hedge funds for their portfolios?
SIMON PEILE: I think the key issue with hedge funds is not that one should try and time when to enter into the hedge funds, but rather to see hedge funds as a way of reducing the overall risk inone’s portfolio – so those who are willing to ride the ups and downs of the equity market should do well in the long run, those who are less willing to take those sort of risks might find that aninvestment of hedge funds can reduce the overall risk in their portfolios, and give them a smoother ride.