Paul Broxup, Head of Portfolio Advisory at Aurum Funds Limited, discussed why investors should diversify their portfolios with the inclusion of hedge funds.
Speaking of 2020’s performance, Paul said “There was a lot of dispersion in the hedge fund industry, with some managers delivering exceptional results for their clients, while others, including some well-known names, actually experienced negative performance for the year.”
Paul adds: “The three strategies with the greatest dispersion elevation versus their normal dispersion levels over the last 10 years were arbitrage, multi-strategy and equity long/short managers. In June 2019, dispersion was at 21%. By year-end 2020, this dispersion, as measured by the spread between the 10th and 90th percentile fund, had increased to 48%.”
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