The benefits that hedge funds offer to a variety of investors are highlighted in a new report by the Alternative Investment Management Association (AIMA), the global industry body representing alternative asset managers, and the CAIA Association, a specialist in alternative investment education.
‘Portfolio Transformers: Examining the Role of Hedge Funds as Substitutes and Diversifiers in an Investor Portfolio’, details the specific qualities that different types of hedge funds offer to institutional investors, the main source of capital managed by the hedge fund industry today.
Said Jack Inglis, CEO of AIMA: “This new paper underlines the heterogeneity of hedge funds today. For every type of fund, there are just as many solutions to investors’ particular requirements.”
William J Kelly, CEO at the CAIA Association, said: “Diversification across multiple asset classes and uncorrelated sources of beta has never been more important, as global equity prices hover near fair value and interest rates remain at or close to zero.”