Joseph Brough is the manager of Hedge Access Group in Chicago, IL, which is an alternative investment management firm that works for institutional and individual investors. Mr. Brough has been the manager for a while, and he knows that hedge funds while carrying an air of mystery around them, have proven to be profitable forms of investment.
As many hedge fund managers will tell you, hedge funds make use of strategies that can seem more aggressive and carry more risk, but these funds offer good returns on their investment. For investors, the following are some of the benefits.
Reduced risk
Hedge funds try to eliminate the risk associated with the underlying investment by taking a ‘hedge’ position. Because of this, in a bull market, a hedge fund can seem to lag behind, but in a bear run, hedge fund managers reap more returns than conventional investments. Not all hedge funds will follow this approach, only those that have lower risk profiles.
Diversified investments
Hedge fund managers don’t put all their investments in one asset class, which helps reduce risk and enables them to diversify a portfolio. Diversification among many asset classes ensures that the portfolio can remain attractive even if the overall market doesn’t seem so.
Professional management
Experienced hedge fund managers like Mr. Brough know how to take the hedge fund to the next level. Many managers like him are experienced and possess the training and education to make informed decisions better than regular investors.
As many hedge fund managers will tell you, hedge funds make use of strategies that can seem more aggressive and carry more risk, but these funds offer good returns on their investment. For investors, the following are some of the benefits.
Reduced risk
Hedge funds try to eliminate the risk associated with the underlying investment by taking a ‘hedge’ position. Because of this, in a bull market, a hedge fund can seem to lag behind, but in a bear run, hedge fund managers reap more returns than conventional investments. Not all hedge funds will follow this approach, only those that have lower risk profiles.
Diversified investments
Hedge fund managers don’t put all their investments in one asset class, which helps reduce risk and enables them to diversify a portfolio. Diversification among many asset classes ensures that the portfolio can remain attractive even if the overall market doesn’t seem so.
Professional management
Experienced hedge fund managers like Mr. Brough know how to take the hedge fund to the next level. Many managers like him are experienced and possess the training and education to make informed decisions better than regular investors.