Hedge funds
Hedge funds are investment instruments for the sophisticated investor, which aim to deliver positive returns regardless of broader market performance. Unlike traditional investments, managers of hedge funds can take both long and short positions, allowing them to achieve returns in both rising and falling markets. Because their returns can be uncorrelated with broader market returns, aiding diversification, hedge funds should be considered for inclusion in almost any portfolio of investments.
We offer hedge funds in a wide range of markets and asset classes, including cash, equities, bonds, derivatives, currencies and commodities.
The complexity of hedge funds means the role of the fund manager is crucial in ensuring you achieve your investment goals. At Barclays Wealth we employ a rigorous fund selection process aimed to ensuring only the highest-quality products reach our clients. Our analysts are extremely experienced in manager selection and asset allocation.
Hedge funds are less liquid than traditional investments, with monthly, quarterly or annual dealings. Although hedge funds present an opportunity to make significant profits, their geared nature means that a relatively small movement in the price of the underlying securities will result in a much larger movement in the value of the fund. It is possible for hedge funds to lose even more money than they have taken from investors.
What we offer
The hedge fund space has grown dramatically in recent years, and current estimates suggest that there are about 10,000 hedge funds in existence, with about £1,000 billion under management. This profusion of hedge funds, employing many different market strategies, means that investors should adopt a portfolio approach to hedge fund investing. This may allow investors to limit risk through diversification, constructing a portfolio of hedge funds with the precise combination of investment risk and expected return that they need.
The portfolios available at Barclays Wealth are either ready-packaged by third parties who meet our rigorous selection criteria (funds of funds), or constructed for our clients using individual funds approved by our team of experts.
For those investors who are experienced in hedge fund investing and have existing hedge fund portfolios, we can offer advice on portfolio construction and investment suggestions from our hedge fund Focus List, which contains a selection of close-ended funds. Our dedicated team of experts constantly monitor and adjust the list to maintain the highest possible standards.
