According to Preqin’s 2016 Global Hedge Fund Report, there are more than 6,000 active hedge fund managers globally. Cutting through the clutter of hedge funds takes experience. It takes years to gain the knowledge needed to find the best long-term hedge fund prospects.
Institutional investors are the dominant hedge fund investors. Public and corporate pension funds as well as sovereign wealth funds comprise more than 55% of investors, allocating over $1 billion to hedge fund strategies. Foundations, insurance companies, family offices and high net worth individuals are other large investors.1
If you, like your peers, are looking to add hedge funds to your portfolio, or grow an existing hedge funds allocation, you may need the help of an experienced team such as Aberdeen’s.
Our hedge fund team has more than two decades of experience in manager research and is able to distinguish among thousands of hedge funds in an ever-evolving industry. Hedge fund strategies remain attractive ways to diversify and add potential returns. These are useful attributes in an unpredictable and volatile return environment. But you need to be strategic with your choice of tools.
That’s why we rely on the expertise of our global teams to access and diligence hedge funds on the ground. On average, our senior investment professionals have more than 20 years of experience sourcing investments from the bottom up. We track around 7000 hedge funds, managers and strategies and conduct deep due diligence on about 280 of them every year (as of December 2015).
Hedge funds can help mitigate downside risk
HFRI Fund Weighted Index returns since inception (January 1999) vs. the ten worst months of return for the S&P 500 Index (Total Return)
Sources: Standard & Poor’s, HFRI, September 2016. Past performance is not indicative of future results. Indexes are unmanaged and have been provided for comparison purposes only. No fees or expenses are reflected. You cannot invest directly in an index.
1Preqin, “The $1bn Club: Largest Investors in Hedge Funds,” May 2015.