Why Hedge Funds?
Some academic researches show that hedge funds achieved higher returns and lower overall risk than traditional investment funds. Many alternative fund strategies place emphasis on positive return in both rising and falling stock and bond markets. Since alternative investments have been able to offer enhanced portfolio performance under all market conditions, often overcoming even negative conditions, hedge funds and other alternative investments could maintain more stable performance than traditional stocks and bond funds. For many institutional investors, to diversify the portfolio risk is one of the key motivations of investing in alternative investment products. In addition to their ability to generate higher returns, hedge funds show a low historic correlation to traditional investments. Because of their flexibility to use full range of investment instruments and techniques, hedge fund returns are somewhat independent of the ups and downs of the market. As a result, inclusion of he
