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The stock market moves in two directions... It’s a fact of life. The key to being on the winning side regardless of which way it
moves—UP or DOWN—is hedge funds. That’s right, hedge funds have a history of making profits in both rising and falling markets,
and therefore play an important role in the diversification of investment portfolios.
The graph shown above illustrates how a hedge fund can provide benefits to a traditional investment portfolio through diversification.
Shown is a comparison between the results of a hedge fund and regular markets as they reacted to the IT bubble in 2000.
The hedge fund performed well during the upward market trend from 1995 - 2000, but the major difference is evident when the bull
market ended in mid-2000. If you want the opportunity to hedge your portfolio, the place to be is alternative investments.
For more information please contact us.
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