James Carthew On hedge funds

The investment proposals I find most puzzling are funds of hedge funds because they demand the most ...

The investment proposals I find most puzzling are funds of hedge funds because they demand the most detailed investigation but seemingly offer the lowest rewards. I can well understand why investors want greater certainty of return, especially as we emerge from a period of very low volatility in all markets. My trusty WINS daily statistics tell me the average return over the past 12 months on the £1.6bn invested in the sterling denominated funds of hedge funds the group covers was just 6%. Better than cash or gilts but nowhere near as safe. Many of these funds held one or both of Amarant...