South Florida Business & Wealth: Hedge Fund Hype

June 17, 2016

In a recent article in South Florida Business & Wealth, WE’s Julie Neitzel explores the hype around hedge funds. Despite a reputation for outperforming public markets, hedge funds saw returns that were well below every major asset class over the past 10 years, and several large, well-known funds closed down. Of the hedge funds that do perform well, most have very high investment minimums and many come with high fees. Despite these drawbacks, hedge fund strategies can be an important part of a diversified portfolio. The lack of transparency can be a positive when discreetly navigating through market volatility, and high fees allow for selection of the highest quality managers. What’s the bottom line on hedge funds? A carefully chosen portfolio of hedge funds can generate attractive risk-adjusted returns, but only if the right managers are in place to add real value.

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