How we help you invest in hedge funds
With over 20 years’ allocation experience we are one of the largest hedge fund investors globally offering a deep, well-researched manager platform.
Investment Outlook Q4 2021: Slow(er) and steady wins the race Watch the video: Investment Outlook Q4 2021: Slow(er) and steady wins the race
Watch our Global Chief Investment Officer Willem Sels discuss our investment strategy for the mid-cycle stage. Equity, credit and EM bond returns should remain respectable, but within equities, we increasingly focus on quality, large caps and dividends.
- Hedge funds operate in a less regulated environment
- Hedge funds are less liquid, for example quarterly with 45 days’ notice
- Hedge funds have imperfect transparency and less frequent pricing and reporting (typically monthly) and this makes investor due diligence, monitoring, performance tracking and reporting more complicated; some hedge funds may take leveraged positions or large positions in risky or less liquid investments which may be subject to significant market volatility
- The risk of any particular hedge fund will vary according to its strategy; your Relationship Manager will be able to provide more details
- The rules and regulations of the UK Financial Services and Markets Act 2000 for the protection of investors, including the protection of the Financial Services Compensation Scheme, do not apply to investment business undertaken with the non-UK offices of the HSBC Group
- Investors in hedge funds should keep in mind that these products can be highly speculative and may not be suitable for all clients. Investors should ensure that they understand the features of the products and fund strategies and the risks involved, before deciding whether or not to invest in such products
- These investments are generally intended for experienced and financially sophisticated investors who are willing to bear the risks associated with such investments, which can include: loss of all or a substantial portion of the investment; increased risk of loss due to leveraging, short-selling or other speculative investment practices; delays in tax reporting; prohibitions and/or material restrictions on transferring interests in the fund; and higher fees than mutual funds
- Diversification does not assure profit nor protect against loss in a declining market