Business Report – With financial markets exhibiting increased volatility, investors are being attracted to hedge funds. While the advantages of hedge funds are clear, one of the greatest difficulties investors have is that of accessibility.
Hedge funds as an asset class are widely and accurately perceived as investments that can limit losses in falling markets. Equities can easily lose 10 percent in a month. Hedge funds rarely lose more than a percent or two, demonstrating their ability to protect portfolios in times of market turbulence.
Investors have, in general, become far more sophisticated and recognise that there is almost always a trade-off between risk and return. Over the last decade and a half, hedge funds have provided one of the best risk-return trade-offs of any asset class.
