The Utility of Hedge Funds

Enhanced Risk/Return Profile

Hedge fund strategies have higher Sharpe ratios than long-only stock investments.

Liquidity

Hedge funds with investments in exchange traded instruments ensure verifiable pricing and exit options.

Accessing niche opportunities

Sector and regional specialists exploit informational edge to regularly outperform long-only regional and sector specialist counterparts.

Returns in up and down markets

Hedge funds’ opportunistic and flexible long/short approaches provides multiple dimensions to generate profits and protect capital .

Information flow

Fundamental and market technical insights from hedge fund managers can be applied across an entire portfolio.