Many hedge funds have the ability to generate positive returns in rising and falling bond and equity markets.
Adding hedge funds to an investment portfolio can reduce overall portfolio risk and volatility while enhancing returns.
Many investment styles to choose from.
High possibility of reducing downside risk.
Investment returns are often non-correlated to traditional investments and overall markets.
Academic research has proven that on average, hedge funds have higher returns and lower overall risk than traditional investment funds.
Hedge funds often provide long-term investment solutions, offering a long term view without the need of having to correctly time the markets.
Offer solid diversification, often used by institutional investors, not found in traditional investments.
From January 1994 to November 2009, the CSFB-Tremont Hedge Fund Index outperformed the S&P 500 in 91.3%, or 63 of 69, of the S&P down months.
Historically, half the risk and better returns: From January 1994 to November 2009, the CSFB-Tremont Hedge Fund Index had a compound rate of return of 9.3%, and a Standard Deviation (a common measure of risk) of 7.8%. For the same period, the S&P 500 had a compound rate of return of 7.5% and a Standard Deviation of 15.6%.
