The National Association of Pension Funds (NAPF) has published a guide to help pension funds understand hedge funds and how they could use these as part of their investment strategy.
‘Hedge Funds made simple’ offers a clear explanation of the main features of hedge funds as an investment for UK pension funds, explaining how hedge funds work, why pension schemes might want to consider investing in them, and why they might not.
Joyce Martindale, member of the NAPF investment council, said: “Hedge funds are often perceived as a complex and risky activity. This new guide is a balanced document that clarifies how they operate, helping pension funds understand whether they are appropriate investment vehicles.”
Jeff Holland, managing director of Liongate Capital Management, which sponsored the guide, added: “As a firm, we believe hedge funds have a relevant role to play in improving pension fund portfolios.
“We are focused on partnering with these pension funds to deliver optimal results in hedge fund portfolios. We therefore recognise the benefits of assisting pension funds in increasing awareness and comfort with the hedge fund industry.”
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