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Alternative Investments Home | Hedge
Funds | Market Linked Deposits |
Options & Futures The concept of a hedge
fund is to hedge your bets against a market fall. As you can imagine,
with over 7,000 funds in existence it is not easy to select a fund
that fits your criteria as an individual investor. Therefore the
concept of a hedge "fund of funds" reduces the risk of selecting
a weak performer.
Hedge funds trade in anything that is tradable.
This can include commodities, derivatives, as well as selling securities
short or long in the markets. Though they have shown good returns
over the last three years, they should only form part of an overall
portfolio. Many institutions now offer a hedge fund of funds under
an absolute return product name.
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