Are hedge funds really worth the risk?

After delivering a negative return of 8.9% last year and having performed poorly throughout the global financial crisis (falling 23.3% in 2008), many investors are now questioning the role of hedge funds and the benefits they bring to multi- asset portfolios. For us, hedge fund strategies help deliver capital growth with managed volatility and reduced market beta. The key in using them, however, is to be disciplined and highly selective. The Midas Balanced Growth fund invests in four liquid, uncorrelated, low market beta, single hedge fund strategies. Our requirement for liquidity has...