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Why Invest with a Hedge Fund?

Hedge Funds operate as pools of private capital. They give you the opportunity to buy or sell diverse assets and actually benefit from certain market weakness, unlike traditional investment that bets on growth and bull markets. That said, hedge funds are incredibly diverse, drawing on diverse strategies betting.

Hedge funds tap into both traditional and nontraditional markets.

Being versatile offers you the best options for diversification when investing. The large pool of capital hedge funds represent offers you huge opportunities when compared to individual investing in stocks & bonds.

The Importance of Skilled Fund Managers

Because of the nuances of hedge fund investment it’s essential that you have talented financial managers, hopefully with years of hedge fund experience, in charge of your fund. The larger point to understand is that hedge funds can perform well in both up and down markets. The performance is determined mostly by the skill of your financial manager.

Hedge Funds Are a Great Tool For Financial Diversification

Diversification is a buzzword in the financial world. Typically we think of diversification as spreading investments out so that stocks & bonds underperforming are balanced by those doing well. But true diversification can come from hedge funds because they react differently to various opposing market trajectories.

Investments that go up and down at the same time are referred to as correlated.

Diversification is enhanced as you invest in a broad range of opportunities that are less correlated than traditional investments. That means you protect yourself from market volatility. Hedge Funds decrease your dependence on market direction and can protect you from economic downturns. In fact, Hedge Fund Managers are experts at leveraging market inefficiencies to you advantage, and the returns they can bring you often increase over time.

Some Hedge Funds Perform Better Than Others

This is largely due to the fact that the skill of your manager is what leads the ship into real ROI. M3 Fund Managers are seasoned financial experts with a track record of success.

Different Hedge Fund Strategies

Some hedge funds seek to buffer you from market volatility, producing stable returns regardless of market conditions. Other Hedge Funds seek to leverage the underlying trends and motion of the markets. Here are a few different strategies.

Long/Short

Buying and/or selling equity or credit securities believed to be significantly  over or under-priced.

Distressed

Purchasing securities of companies experiencing restructuring and making returns on them once the process is complete

Managed Futures

Assets like agricultural products or precious metals are invested in, taking long and short positioning in various global futures markets.

Global Macro

Profit from changes to securities markets, interest rates, exchange rates and commodities prices—taking views on the various opposing direction of markets.

Multi-Strategy

Like it sounds, Multi-Strategy allows you to invest in any combination of the above mentioned methods for maximum investment diversification.

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