Institutional investors to shift to hedge funds – HFA
HFA Holdings chief executive Spencer Young has defended the performance of hedge funds, claiming they have outperformed long-only investment funds during the market tumult.
Young said while investors in traditional long-only funds have lost around 40 per cent of their invested capital in the year to date, the hedge fund industry has recorded average losses of “less than half that amount” and proven its long-term value.
He said as a result, “institutional investors are looking to steer money towards hedge funds in the wake of the global credit crisis as they seek a safe haven for their capital”.
Young said “professional investors have figured out what we have been saying all along, that a well-managed absolute return fund is the safest place to be in a volatile market”.
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