Hedge Funds Outperform in 2011
According to Eben Karsten, portfolio manager from Blue Ink Investments, Long-Short Traditional hedge funds on average recorded a Nine.16% increase more than 2011, following gaining 3.47% during the 4th quarter associated with 2011. Long-Short Aggressive hedge funds documented an 8.96% increase for 2011, after gaining 5.71% during the fourth quarter.
Long Short hedge funds were able to produce good results with subdued risk during this period. Equity Market Neutral funds returned 5.62% on average over 2011, after gaining Two.73% during the 4th quarter.
Karsten states 2011 was a year that’ll be remembered as extremely volatile, and while the marketplace gave investors positive results, the return was not commensurate towards the risks felt by investors. He admits that that there is also no reason to think that this volatility will disappear in the near future.
“The 12 month volatility (standard deviation) of the ALSI was more than 12%. This really is in comparison to the BIC, that reported unpredictability of approximately 2% during the exact same period.Inch Karsten says that the ultimate volatility amounts of global stock markets recorded during throughout 2011 has highlighted the actual diversification advantages that local hedge funds along with other alternative resource classes can bring to an investment portfolio.
“These asset classes can provide a degree of protection when in market disturbance and have once again managed to safeguard investor funds in volatile markets.”