Hedge funds may have a place in retail portfolios
Greg Peacock, principal at New Zealand Assets Management, said the rationale for incorporating hedge funds into a portfolio was very strong.
“It’s a bit counter-cyclical given the headlines about the performance of hedge funds.”
He said while traditional asset allocation would see investors in bonds and equities, both seemed expensive at the moment.
“Building a portfolio that includes some diversified assets seems to be a sound thing to do. If nothing else, it makes it easier to hold on to more traditional assets when they have a difficult period. If you have something that is doing well it psychologically makes it a bit easier.”
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