The manager
The key element of a hedge fund is its manager. This was summed up by Georges Karlweis, inventor of the world's first fund of hedge funds launched by Banque Privée Edmond de Rothschild in 1969. As Mr Karlweis put it, the three main things to consider when choosing a hedge fund are
« the manager, the manager, the manager ».
The managers of the funds we pick are professionals, the finest in their segment. Everything hinges on the intelligence, skill, entrepreneurship and survival instinct that characterise their breed.
Buying into a hedge fund allows investors to tap these seminal features.
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Why funds of hedge funds?
- Given the complexity of hedge funds' management strategies and of the administrative handling they involve, investors who want these products in their portfolio should either be well versed in finance or operate through a professional intermediary.
- "Don't put all your eggs in one basket," the old saying goes. Any alternative investment should be in a fund of hedge funds. Buying into a single vehicle is a mistake.
- The Edmond de Rothschild Group has developed a line of funds of hedge funds that cover the full array of alternative strategies needed by private and institutional clients.
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Hedge funds as an asset class
Alternative investment styles can form an asset class in their own right, just like equities and fixed income.
But to achieve this, hedge funds should be combined in a multimanager vehicle.
The Edmond de Rothschild Group created this new asset class by setting up the world's first fund of hedge funds.
We believe that in the interest of our clients, all asset classes have to be taken into account when managing financial assets.
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