About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds Other Sites:   depositrates.co.nz  |   landlords.co.nz
Last Article Uploaded: Friday, February 12th, 2:23PM
rss
Latest Headlines

Not all hedge funds created equal

Investors considering putting their money into hedge funds should seriously consider using ones that are diversified across a range of styles, AXA Global Structured Products managing director Barry Seeman says.

Tuesday, November 20th 2001, 12:48AM

by Philip Macalister

Investors considering putting their money into hedge funds should seriously consider using ones that are diversified across a range of styles, AXA Global Structured Products managing director Barry Seeman says.

New York-based Seeman says because there are so many different styles and types of hedge funds the diversified approach is a good way to go.

The fund he currently runs uses 35 different funds and that is likely to grow to 50 next year.

Are investors going to understand the nuances of an individual hedge fund strategy? "Absolutely not," Seeman says.

"That's why you need a well diversified hedge fund portfolio."

Seeman says despite having a wide range of funds and styles there are some he would not use.

Also he does not believe the market neutral fund story.

"We do not adhere to the notion that things are market neutral. We think the term market neutrality is misused."

He says market neutral means there is a true disconnect from the movement of markets. However, every single strategy that a hedge fund implements sources its returns from the actual movement of the markets.

"They do have some component of market risk in their returns," he says.

"The beautiful thing about hedge funds is that if you add hedge funds to a traditional portfolio you actually enhance the risk return profile."

The problem is that what you don't see is where the returns comes from.

Because of this AXA employ a team of capital market experts to analyse the strategies used, how well they are implemented and the risks.

Seeman says that "no one strategy, nor no one fund represents all hedge funds."

"To create a stable asset within your portfolio you really need to look at all the different strategies and figure out the mix.

Because of this AXA is more like a researcher than a fund manager, he says.

You can read Philip's blog here: http://www.goodreturns.co.nz/blog/

« News Round UpSovereign takes regulation bull by the horns »

Special Offers

Commenting is closed

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
  • Forum attendees agree changes needed
    “To add to my penultimate paragraph, I note the Code Committee in its submission on FAA Review, in pars 15ff, it attempts...”
    12 hours ago by Murray Weatherston
  • Forum attendees agree changes needed
    “Hi Murray I was not at the meeting on Wednesday but a close friend was. From what he told me my impression was that the...”
    12 hours ago by Tash
  • Forum attendees agree changes needed
    “Wake up Life general insurance and mortgage advisers This response is given in my pure personal capacity and does not...”
    18 hours ago by Murray Weatherston
  • MBIE rates financial advice as a career
    “I have been wondering when our role as advisers is going to be referred to as a profession. I see in this article MBIE appear...”
    19 hours ago by AFA Muggins
  • Time to tackle issue of advice for less wealthy
    “We help them get 5% or 6%....really? Is that net of fees and tax as compared to the 2%? Just what type of assets will these...”
    21 hours ago by MPT Heretic
Subscribe Now

Weekly Wrap

Previous News

MORE NEWS»

Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
ANZ 5.74 4.89 5.05 5.10
ANZ Special - 4.39 4.49 -
ASB Bank 5.75 4.85 4.99 5.25
ASB Bank Special - 4.39 4.49 4.75
BankDirect 5.75 4.85 4.99 5.25
BankDirect Special - 4.39 4.49 4.75
BNZ - Mortgage One 6.40 - - -
BNZ - Rapid Repay 5.85 - - -
BNZ - Special - 4.39 4.39 4.49
BNZ - Std, FlyBuys 5.79 4.85 5.09 5.25
BNZ - TotalMoney 5.79 - - -
Lender Flt 1yr 2yr 3yr
Credit Union Auckland 6.70 - - -
Credit Union Baywide 5.95 5.25 5.15 -
Credit Union North 6.45 - - -
Credit Union South 6.45 - - -
Finance Direct 6.10 6.45 6.69 7.10
First Credit Union 5.85 - - -
Heartland 6.70 7.00 7.25 7.85
Heretaunga Building Society 5.75 4.85 5.05 -
Housing NZ Corp 5.74 4.85 4.99 5.10
HSBC Premier 6.10 4.25 4.49 4.99
HSBC Premier LVR > 80% - - - -
Lender Flt 1yr 2yr 3yr
HSBC Special - 4.25 4.25 -
ICBC 5.60 4.69 4.69 4.99
Kiwibank 5.65 4.85 5.00 5.25
Kiwibank - Capped - - - -
Kiwibank - Offset 5.65 - - -
Kiwibank Special - 4.39 4.49 4.85
Liberty - - - -
Napier Building Society 6.50 5.80 6.70 -
Nelson Building Society 6.35 5.20 5.40 -
NZ Home Loans 5.85 4.85 4.99 5.25
Perpetual Trust 7.70 - - -
Lender Flt 1yr 2yr 3yr
Resimac 5.59 5.24 5.29 5.39
SBS Bank 5.74 4.85 4.99 5.10
SBS Bank Special - 4.35 4.35 4.65
Sovereign 5.85 4.85 4.99 5.25
Sovereign Special - 4.39 4.49 4.75
The Co-operative Bank 5.70 4.39 4.49 4.75
TSB Bank 5.74 4.85 4.95 5.25
TSB Special - 4.35 4.29 4.79
Wairarapa Building Society 6.20 5.75 5.95 -
Westpac 5.85 4.85 5.05 5.10
Westpac - Capped rates - 6.15 6.15 -
Lender Flt 1yr 2yr 3yr
Westpac - Offset 5.85 - - -
Westpac Special - 4.39 4.39 4.65
Median 5.85 4.85 4.99 5.10

Last updated: 10 February 2016 10:11am

News Quiz

The maximum remuneration model for Australian life insurance advisers is to be set at what?

Upfront 40% + trail 20%

Upfront 50% + trail 10%

Upfront 50% + trail 20%

Upfront 60% + trail 10%

Upfront 60% + trail 20%

MORE QUIZZES »

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox
 
Site by Web Developer and eyelovedesign.com