The tailored route: how to unleash the full potential of a hedge fund allocation
William Glass, partner and head of business development at EIM, talks about how to invest in a professionally designed portfolio of hedge funds that is customised to suit the needs of individual investors
Understandably, in the past, the first foray into the world of hedge funds by many institutional investors was through commingled fund of hedge funds products. The lively debate about whether or not hedge funds represented a new asset class, or just a series of new investment strategies applied to existing asset classes, reflected the fact that investors were having trouble understanding the structural underpinnings of hedge fund returns.
Hedge funds, as a whole, clearly seemed to deliver on their stated ability to generate positive performance, or at least provide significant downside protection, even in unfavourable markets, but their low correlations to equities and...