Hedge funds are becoming the new trend and are picking up recognition for the solid investment vehicles they are. When chosen correctly, they are the new way to generate meaningful returns while not throwing your investment around in a washing machine of volatility.
Like any investment decision, one must choose an investment vehicle that has a proper track record of providing what is written on the tin. Our tin says, “Equity-like returns with one-third (1/3) of the drawdown(losses) of equity markets”.
In our current high inflationary economic environment mixed with a fat junk of geopolitical uncertainty hurting investor confidence, the most appropriate investment vehicle is one that foremost protects your downside risk before generating returns.
We have developed a Fund of Hedge Funds. Put simply, a combination of what we see to be the best performing and solid hedge funds in the country. In curating our Fund of Funds we did not apply subjectivity, only the facts. We performed a proper 10 year back tested approach, a comprehensive and ongoing Due Diligence undertaken on each of the funds that we utilize, and Periodic Rebalancing when funds move out of line with each other.
Using such strategies gives us a decided edge when enhancing returns and minimizing risk.
This creates an unbelievably powerful concept of compounding growth which in turn ensures a great investment opportunity.
From the 1st August 2023 – 31st May 2024, our Funds first 10 months, it is worth noting that it is delivering exactly what its slogan advertises: “ Equity like returns, with 1/3 of the drawdowns(losses) of equity markets “
Over this period of difficult investing times, Our Fund of Hedge Funds has delivered a return of 10.34% relative to the Top 40’s -3.35%.
Signal Balanced Offense Defense (Red) vs Top 40 (blue) as of end of May 2024
We are continuing to pursue our full faith in use of our Fund of Hedge Fund strategy as we understand that:
- Hedge Funds prove to be incredibly resilient in periods of market uncertainty.
- Hedge Funds are strong, persistent performers when market sentiment settles, and confidence is restored
- Hedge Funds are one of the few diversifying assets, their use of differing strategies and tool kit that far exceeds the normal equity fund managers basket of tools allows them to seek extra return and better protect their risks.
Our fund of Hedge Funds, contains hedge funds from 360ne, Peregrine, and Fairtree.
You can find our fund on the Allan Gray website as a Model Portfolio Signal Balanced Offense Defense.
We have a range of different investment opportunities on Allan Gray.
For more information, please get in touch with us, and let’s build your wealth.