Opalesque Industry Update - Commonfund today announced the release of the white paper, “Hedge Funds as Diversifiers in Institutional Portfolios” authored by members of its Hedge Fund Strategies Group, Kristofer Kwait, Managing Director, Head of Hedge Fund Research, John Delano, Director, and Justin Santana, Director. While investors allocate to hedge funds for a wide array of reasons, one of the primary roles of hedge funds is to diversify broad market risk. The authors explore four key factors driving the compelling value that hedge funds continue to offer institutional investors.|
As an investment class, hedge funds have historically demonstrated the ability to generate superior, risk-adjusted returns to the broad market. The authors posit that even in periods when hedge funds underperform the broad market, they still provide measurable value to a portfolio due to their diversifying properties. After all, if completely confident in the direction of the market, an investor would not need hedge funds or any other source of diversification.
The white paper may be downloaded by clicking here.