Hedge funds: Made for times of strain
People often prefer cautious forms of investments and it will take a while for them to understand what the use and value of hedge funds are, writes Johann Barnard
With hedge funds adapting to the newly regulated status of their retail offerings as collective investment schemes, fund managers are eager to tap into the broader market. But the truth is that this market is not very broad at all, and that attracting money from high-net-worth people will remain a challenge. Hedge funds offer clear benefits to investors who have the means to include them in their portfolio, and the industry is keen to attract those investors to their funds. It won’t be plain sailing, though, and there is room for making these funds more accessible and visible. Laurium Capital’s Kim Hubner says it’s been a tough environment for investors generally, with money flowing to more cautious assets such as fixed interest funds. "With market returns over the past three years being rather pedestrian (6.8% from the all share), people are not really allocating a huge amount of money to investments; especially not to equities and hedge [funds]. "There are definitely opportunities...
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