Hedge funds head for mainstream market

Article Abstract:

Hedge funds are becoming more accessible to retail investors through major companies operating in the sector. The new products from these big brands tend not to be called hedge funds, due to the image that hedge funds have with the general public. Henderson has launched a technology hedge fund called the Technology Absolute Return Fund. These funds are not yet offered to retail investors, but they are available to pension funds and other intermediaries, emphasizing that hedge funds do not necessarily represent high risk levels. Retail investors can use funds of funds to gain access to hedge funds.

Analysis

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Not such wild things after all

Article Abstract:

Hedge funds can be used to provide an absolute return independent of developments on stock markets. They can provide security for investors who are concerned about bear markets or returns linked to stock price indices. Relative returns are linked to stock market developments. Hedge funds tend to be located offshore to avoid control by financial regulations and they cannot be marketed in the UK to private investors. They are also associated with investors such as George Soros in stories that emphasis major losses or gains.

Derivatives (Financial instruments)

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Hedge funds find new friends

Article Abstract:

Hedge funds can be used to reduce the volatility of a portfolio, and they can provide gains when markets are falling. A range of investment strategies have been given the label of hedge funds, and there are six identifying characteristics set out by author, Beverly Chandler. These are usage of gearing, payment through performance incentive fees, absolute returns as a goal, usage of offshore bases, being able to go short or long on assets, and often investing their own funds.

Portfolio Management, Personal finance

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Subjects list: Economic aspects, Portfolio management, Investment companies, Hedge funds
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