|
Morten Spenner Benedicte Gravrand, Opalesque Geneva:
The HFRI Fund Weighted Composite Index may have gone down 2.5% in August and down 1.47% YTD, but this is no reason to write hedge funds off. Or so argues a fund of hedge funds manager, who says they are now back doing exactly what investors expect of them, and the head of a multi-manager group, who claims that August showed "just how suited hedge funds are to today’s febrile financial markets." Read on to witness their rationale.
IAM: Many reasons to re-consider hedge funds
Morten Spenner, CEO of International Asset Management (IAM), a global £2.8bn ($4.3bn) fund of hedge funds manager, challenges the recent loss of faith in hedge funds and argues that they are now back doing exactly what investors expect of them.
Hedge funds have had dull returns since the "bounce-back" year of 2009 – and so many investors have "written off" hedge funds, he says. (Hedge funds were up about 10% in 2010). But since January 2010 hedge funds have met expectations for (1) dampening volatility in tough times and (2) generating consistent returns.
Indeed, while equities faced headwinds, hedge funds provided protection - even though correlation has been 0.90. In "January 2010, May 2010, August 2010, and August 2011, the MSCI World Index had total returns of -25.28%. During these months, hedge funds' performance was -4.91%," he explains.
As for bonds – even if there were less headwind...................... To view our full article Click here
|
RSS
