ISHARES ETFS
Institutional Investors
By Type
iShares ETFs
SUSTAINABLE INVESTING
RESEARCH & INSIGHTS
Hedge funds are pools of investment capital that have the flexibility to employ a vast range of trading strategies in both traditional and non-traditional markets. Because of this versatility, hedge funds can bring diversification to a portfolio that is hard to find elsewhere.
Creating a truly efficient portfolio relies on bringing together investments that respond to market events differently. Hedge funds can enhance diversification in the following ways:
Hedge funds rely more heavily on manager skill than broad market movements to generate returns. As a result, performance can vary widely. Choosing a manager based on their past track record is a given, but there are other factors to consider:
In our view, there are five main categories of hedge funds: