Thursday, September 15, 2011

Hedge Fund Strategies (existing NZ funds all long + bleeding)

At Global Fund Data, it's possible to review strategies applied by successful hedge funds today, along with their performance profiles. Of course, specific strategy details are not available, as expected from any other form of trade secrets. 

NZ Hedge Funds

Interestingly, existing New Zealand funds are practically all Long & Hold types with large exposure to volatility, market risks. As the world braces for European sovereign credit uncertainties, volatility is expected to remain high for a while into the future. This is bad for any buy & hold equity / fixed income racket.
Today's market participants are much more sophisticated, Buy & Hold is obsolete as means of asset management.

As investors become increasingly sophisticated and aware of available alternative investment strategies, the local funds will likely have to adapt and offer better concepts to hold off redemptions.

0 Reflections: