While they are still viewed with caution, Rebecca Jones looks at whether hedge funds could offer an attractive alternative for investors in a climate of lower returns.
Mike Horseman, director, Cockburn Lucas Hedge funds can be an incredibly useful investment tool when used correctly, but that comes with a lot of warnings and requires a huge amount of expertise to get the call right. Unless you understand what goes on in that hedge fund - what it does, the type of funds it uses and where its jurisdiction is - buyers beware. They can be expensive: certainly, a lot of the old hedge funds were always 2 plus 20 [2% annual management fee plus 20% performance fee]. However, I'm sure hedge fund managers would argue they are using both pretty unique strategie...
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