Accessibility Statement Skip Navigation
  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing
  • Login
  • GDPR
  • Create a Free Account
Return to PRWeb homepage
  • News
  • Resources
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All News Releases
      • Multimedia Gallery

      • All Multimedia
      • All Photos
      • All Videos
  • Business & Money
      • Auto & Transportation

      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Hamburger menu
  • Cision PRWeb provides efficient communication tools to continuously engage with target audiences across multiple online channels
  • Create a Free Account
    • ALL CONTACT INFO
    • Contact Us


      11AM ET Sunday – 8PM ET Friday

  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR
  • Send a Release
  • Sign up
  • Log in
  • Resources
  • RSS
  • GDPR

Why Are Hedge Funds So Popular Despite Recent Disappointing Returns?
  • USA - English


News provided by

Reynolds Group, Private Investment Counselors, LLP

Mar 10, 2015, 03:00 ET

Share this article

Share toX

Share this article

Share toX

Cambridge, MA (PRWEB) March 10, 2015 -- Six Considerations to Address with Your Investment Advisers When Investing in Hedge Funds

1.How have your hedge funds performed relative to your other investments? Specifically, how have your long-term hedge fund returns been vis-a-vis your other asset classes and capital market benchmarks? Do you have an absolute standard for the return you want to generate? How have your hedge funds performed vs. that goal? The answers to these questions are more important than whether the hedge fund industry’s assets under management "AUM" is up or down.

2.Are you fully satisfied with your hedge fund selection process? Manager selection is always important, but the hedge fund environment is particularly complex with limited public information. Additionally, since hedge funds have liquidity constraints, you are not free to terminate an unsatisfactory investment on a moment’s notice. The best information regarding detailed fund-by-fund returns and thorough due diligence about hedge funds is highly proprietary. Most wise investors retain an expert consultant to assist them with manager selection.

3.Has your hedge fund program offered protection for your portfolio in periods of crisis? The years 1987, 2001, 2008 and early 2009 were particularly difficult for investors. Be sure to evaluate the returns of each of your current (or potential) hedge funds to see how well each of them behaved during periods of financial crisis or severe stress.

4.Are your hedge funds equity alternatives or fixed income alternatives? If a fund is to be used as fixed income alternative then it should not be compared to the returns of the S&P 500. You need to have a candid dialogue with your advisers and/or each hedge fund manager to develop a fair and appropriate set of expectations about each fund’s potential investment return and volatility.

5.What role do you want hedge funds to play in terms of managing your portfolio’s volatility? Hedge funds can play a favorable role in reducing volatility. You may be well-advised to accept a reduced return compared to the S&P 500, or other capital markets return, if the hedge funds you invest in can reduce the overall volatility of your portfolio and achieve a predictable return.

6.How much organizational risk can you accept? In building a hedge fund portfolio, you can put hedge funds roughly into three categories:

  • Mega Managers: These are large, multi-billion dollar funds with the capacity to accept significant additional AUM. Their names may appear in the business press with some regularity. They may even be publicly traded companies, or belong to large public financial institutions. These mega funds typically have the least organizational risk. On the other hand, they may not be the most interesting and rewarding funds over the next 10 years – they have already made it big.
  • Institutional Main Stream: These funds are somewhat smaller, and may be highly selective in taking additional investor assets – many are open only with a suitable introduction. They may not be willing to engage in fee-sharing with financial institutions that sponsor hedge fund platforms. These funds tend to avoid the press and are hard to find without expert assistance. While they may have more organizational risk than the mega managers, they are well-established businesses (nonetheless professional due diligence is essential).
  • Emerging Managers: These funds have $50 million – $1.5 billion in AUM and may have the greatest organization risk. Investors typically engage specialized expertise in the emerging funds arena to help them ‘get it right’ (i.e., stay out of trouble). All that said, there can be very rewarding investment opportunities with emerging funds.

Three Critical Success Factors for Investing in Hedge Funds

1.Determine the strategic role for your hedge funds: Wise investors do not embrace hedge funds to follow the herd. Nor do they employ hedge funds to maximize short-term returns. Prudent investors hire hedge fund managers to accomplish an important role in their portfolio in terms of risk/volatility management. Their mission is to achieve favorable long-term returns that are more muted than long-only equities, but attractive nonetheless.

2.Evaluate structural considerations: Informed investors understand the liquidity limitations of their hedge fund portfolios, as well as the fee burdens that hedge funds bear. Furthermore, thoughtful taxable investors explore the after-tax returns from their hedge fund portfolios.

3.Build an effective management team: Prior to embarking upon hedge fund investments, sensible investors are careful to assemble the right professionals and a deeply experienced investment committee to help them to construct and manage a highly successful program.

Questions about investing in hedge funds? Please call 617.945.5157 or email jack(at)rgpic(dot)com. Our complete disclaimer appears here http://bit.ly/1Gnzbwy.

About Us
Reynolds Group, Private Investment Counselors was established in 2010 to help clients manage and resolve the complex investment, asset protection and legacy planning needs that comes with having significant investment resources. John M. (Jack) Reynolds, the firm’s founder, has over 25 years of investment experience growing and protecting financial and non-financial assets for individuals, family offices, endowments and professional services firms in the United States and Europe.

Jack Reynolds, Reynolds Group, Private Investment Counselors, LLP, http://www.rgpic.com, +1 617-945-5157, [email protected]

Modal title

Contact PRWeb

  • 11AM ET Sunday – 8PM ET Friday
  • Contact Us

About PRWeb

  • About PRWeb
  • Partners
  • Partnership Programs
  • Editorial Guidelines
  • Resources

Why PRWeb

  • Why PRWeb
  • How It Works
  • Who Uses It
  • Pricing

Accounts

  • Create a Free Account
  • Log in
  • Contact Us

Do not sell or share my personal information:

  • Submit via [email protected] 
  • Call Privacy toll-free: 877-297-8921

Contact Cision

Products

About

My Services
  • All News Releases
  • Online Member Center
  • ProfNet
Cision Distribution Helpline
888-776-0942
  • Legal
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 Cision US Inc.