There are plenty of new ways to get hedge funds exposure. Which will stand the test of time? We asked Michael Nicks of Pepperdine University from 20-22 June 2016.
“The strategies that will stand the test of time are those that highlight the value added from the hedge fund industry. The way we’ve done it in the past has failed to really exemplify what we’re getting from the hedge fund space.
Two strategies we use and we think we’ll be successful are portable alpha strategy where the non-equity returns are front and centre, and a diversifying strategy where we really focus on the narrower subset of strategies that that have a very low correlation to equity markets.
Equity risk dominates our portfolio and therefore they’re diversifying to our portfolio as well.”