Hedge funds provide a smoother route to returns than the rollercoaster ride of equities, says SkyBridge
Investing in equities can be a wild ride. Like any rollercoaster you’ve ever ridden, the slow climb up is a serene experience. The higher you get, the better the view. Wonderful. Then you descend, the G force kicks in, and you start to scream with exhilaration; fear and adrenaline forming a heady mix.
Hedge fund investing, by analogy, is less a rollercoaster ride, and more a steady drive in a Rolls Royce; designed specifically to get the investor to their end destination as smoothly as possible.
Despite this, traditional media continue to compare hedge funds to equities which are having another great year; equities are up 16 per cent whereas hedge funds are up approximately 7.5 per cent.