A New Look At The Upside of Investing in Hedge Funds

Business people talking in meeting

Investors looking to reduce risk, improve diversification and generate attractive risk-adjusted returns versus equities might consider taking a new look at traditional hedge fund investment strategies.

In her article Jordan Nault, the global leader of Mercer’s Hedge Fund Boutique provides a quick overview of hedge fund strategies, the upside potential, their timeliness due to questions of alpha and beta, and steps to structuring hedge fund allocation. She further walks you through Mercer’s hedge fund strategy that calls for diversifying return drivers in a growth portfolio to generate attractive risk-adjusted returns relative to equities over a market cycle. Whether you are currently employing a hedge fund strategy or considering its risk-rewards, Nault’s insights could help you identify a thoughtful path forward.

"Our hedge fund strategy is to diversify return drivers in the growth portfolio and generate attractive risk-adjusted returns to equities over a market cycle."

We look at three main steps to help investors structure a hedge fund allocation:

  1. Consider the investor’s objectives and beliefs and analyze their current investment portfolio
  2. Review the investor’s appropriate hedge fund allocation depending on their objectives and constraints
  3. Review the best way to implement allocation depending on the investor type – Whether they are a “do it for me,” guide me,” or “let me do it” investor.

Keep reading to learn more about the latest in hedge fund investing.

Read more about some important and timely developments in traditional hedge fund investing.

To read the full article, complete and submit the form below. Note you may need to enable pop-ups from mercer.ca to receive the file.
*Required Fields

By clicking Submit, I agree to the use of my personal information according to the Mercer Privacy Statement. I understand that my personal information may be transferred for processing outside my country of residence, where standards of data protection may be different.