The Future For Hedge Funds

By Mark Barnicutt on June 4, 2010

It’s been almost three years now since the initial cracks in the global capital markets were first experienced back in 2007. At that time, it seemed like the term, “Hedge Fund” was on the lips of so many investors who were seeking spectacular, yet unrealistic, investment returns.  Since this time, the face of hedge fund investing has changed dramatically.  Many investors have realized the key importance of the following features of any investment offering:

  1. Liquidity – ‘How quickly can I get access to my money?’
  2. Transparency – “Who’s managing my money and how much am I paying?
  3. Objectivity – “Is my portfolio structured in my best interest?
  4. Control – “Who has access to my hard earned money?

For these reasons, it appears to HighView that many investors have moved back to the basics of hedge fund investing in which hedge strategies:

  1. Can provide portfolio benefits, when done properly (See The Four Points Above)
  2. Are not a default strategy to be included in every client’s portfolio….a client has to have a need and risk tolerance for such strategies
  3. Are a portfolio allocation — not the whole client portfolio!!

The October 2008 article by Nancy Curtin, Chief Investment Officer with Fortune Asset Management describes the global future of hedge funds. Her views remains very relevant today and look for:

  1. Fewer players
  2. Fewer strategies
  3. Less Leverage
  4. Increased Regulation

To read this article, click here.

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