Biz Direct MarketKnowing When To Make A Good Decision

Bull market? Time to buy? It’s always time to invest in good hedge funds. Over 3,000 absolute return funds made money in the last 12 months but few long only equity managers did. Money management is about meeting client objectives and QUALITY hedge funds HAVE delivered the performance that investors require. The FACT is that the prospects for the REAL hedge fund industry are outstanding. Every large investor I know intends to INCREASE or maintain their allocations to absolute return.

The redemption of hot money creates more room for sophisticated investors who understand that smaller AUMs lead to larger alphas. Poor quality “hedge funds” that shut down will simply be replaced by better new ones. So while my zero beta, all alpha portfolio was nicely up in 2008, I’ll be keeping those yen in hedge fund strategies. The “free lunch” of “passive” index funds has cost investors too much for too long. Risky asset classes are volatile. The cult of equity and the credit cataclysm have devastated beta-centric portfolios. The way forward is to allocate to investment and risk management skill.

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