Why a Hedge Fund?

Hedge funds offer a relatively new way of investing in the stock market. They adopt a wide range of strategies and use gearing where appropriate. Central to the strategies employed is that of 'short' selling. This accounts for some 50% of hedge fund activity and involves selling shares, rather than buying them, in the belief they will fall. A profit, therefore, arises on the fall rather than the rise in the value of the asset. Attractive to: • Medium term investors looking for capital preservation targeting better returns than cash • Non-domiciled investors (i.e. not born in the UK) taking advantage of an offshore aaainvestment • Clients with self invested personal pensions (SIPPs) and members of small Self-aaaadministered pension schemes (SSAS) Capital Protected Products Capital protected products allow investors to gain some exposure to financial assets whilst protecting the capital invested. In return for surrendering any income related to the underlying asset. The degree to which ...  more