Gareth Henry has an actuarial mathematics degree from the University of Edinburgh Scotland. This is typically a degree that lands graduates at an insurance company. Gareth Henry was always special. He says he always had a knack for networking on a more personal level. Other mathematics students may have struggled with that. Since he had that ability, he started to be more attracted to the investor relations and capital raising side of things. Gareth Henry’s experience working with contacts at various types of funds has taught him how investors look at hedge funds, equity and bond investments. He uses his experience daily while talking to investors and comparing hedge funds to traditional stocks and bonds, explaining how they can diversify a portfolio. View Henry Gareths’s profile at Linkedin.
The Importance Of Choosing Wisely
It’s important to analyze the characteristics of potential bond, stock, and hedge fund investments as a risk vs return ordeal. According to Gareth Henry, risk-adjusted return is important to the investors he deals with. Institutional investors mainly, are needing to diversify by adding hedge funds along with their stocks and bonds. Even though hedge funds have struggled to keep up with the surging market, they have the resilience to outperform the others stocks when the market takes a turn. It’s the sophisticated investors that have an understanding of how this works.
Learn The Strategies
Even with high performance potential the ability of hedge funds as an asset has the potential to be volatile. An investor will need to know the strategy of a fund and its performance history. Equity investments can be volatile as well, however their patterns are more predictable. The ability to track patterns in the history of stocks and bonds have made them a regular choice for all investors. Hedge funds are more of a niche choice picked by more investors with a high net worth.
Hedge Funds Can Be A Reliable Risk
Gareth Henry reports that in 2018 a volatile stock market still provided over double the average hedge fund’s return over the same amount of time based on information from HFR. If you look at it from a broader angle and analyze the hedge fund from a risk-adjusted point of view, the results are not the same. When there is a risk adjustment, the hedge funds can deliver larger returns than the index.
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