Investment Diversification

This latest update for you focuses on alternative asset types, specifically hedge funds and hedge strategies.

Generally, financial commentators and multi asset class fund managers focus on building and managing investment portfolios with a mix of equities, fixed interest and cash. Sometimes they add alternatives (including hedge, property and private equity) but it is not common.

In recent years, the relationship between equites and fixed interest has changed. They were not correlated and, thus, moved in different directions - meaning if they carefully balance the two, investors could have some propection from market downturns, particularly in “bear” markets.

Alternatives are grossly underrated, simply because they are normally not liquid eg property.

In this update we focus on the hedge fund types likely to perform well in 2023 - with the usual caveat there are no guarantees in the investment marketplace! It is important to make contact with your adviser within the Just Service Global Network for more information on whether they could add value to your portfolios.

The hedge fund industry has seen steady growth in recent years, with total assets under management reaching a record high of $3.5 trillion in 2020. This trend is expected to continue in 2023, as investors look for ways to diversify their portfolios and seek higher returns in a low-interest rate environment.

Hedge funds use a variety of strategies to generate returns, including long/short equity, global macro, and event-driven. In 2023, we expect to see continued interest in long/short equity strategies, which involve taking both long and short positions in stocks in order to benefit from market movements in both directions. Global macro strategies, which involve making bets on broader economic trends, may also be popular as investors look to navigate a potentially volatile economic environment. Event-driven strategies, which focus on specific events such as mergers and acquisitions, may also see increased interest in 2023 as companies look to grow through strategic transactions.

Overall, hedge funds are likely to remain an attractive option for investors looking for a diversified portfolio and the potential for higher returns. However, it's worth noting that hedge funds can be high-risk investments and may not be suitable for all investors. As always, investors should conduct their own due diligence and consider their risk tolerance before investing in any hedge fund or alternative investment.

In conclusion, 2023 is expected to be a positive year for hedge funds and alternative investments, Diversification and appropriate risk management strategy are key for any successful investment plan.

As always talk to your adviser within the Just Service Network if you would like information or otherwise review your personal financial planning.

For all enquiries email info@justserviceglobal.com

Regards

The Just Service Client Service Team