Trading funds are products that are often generically termed as Alternative Investments or Alternative Asset Classes.
These products can take the form of investments in non-traditional or less liquid assets such as currencies, commodities or precious metals.
There are also alternative strategies that include non-traditional techniques beyond ‘long only’ investments that may include:
Arbitrage: Simultaneously buying and selling related securities, sometimes in different markets, to exploit mispriced relationships.
Hedging: Investing to offset the risk of price declines using methods such as buying or selling derivatives or ‘short selling’.
Leverage: Borrowing money or using derivatives or short sales to increase exposure to high conviction ideas or strategies.
There are many ways to access alternative asset classes and strategies. Choosing the appropriate fund managers, currency traders and hedge funds can be a very daunting process.
We have expertise in identifying and thoroughly researching such product providers, establishing that they operate under strictly defined risk limits and ensuring that they have a strong, proven track record of consistent performance over several years. We undertake due diligence on an annual basis.
Such products were once the domain of the super wealthy but are now accessible to suitably qualified investors, not just as a high yield investment, but as a stand-alone investment used for strong growth as well as income. It is little wonder that this is now one of the fastest growing investment sectors.