The hard-working successful financier Gareth Henry reveals his optimism on Hedge Fund Demand for 2018. He notes that overall investor appetite for hedge funds is rising and at record levels at around $3 trillion dollars. With allocations to hedge funds rising to 28 percent over 12 percent in the span of the past year, Gareth Henry is confident in his forecast.
Gareth Henry helps the layman understand the terminology involved with Hedge funds. Hedging a bet allows one to wager on different outcomes with the end of making a profit while in the least limiting the exposure to loss. Hedge funds became new decades ago when they were named through the practice of “holding stocks both long and short”. This financial tool helps investors profit whether the market rises or falls.
Gareth Henry further notes that with the stock market reaching record levels and the potential of rising interest rates from the Federal Reserve, investor interest in hedge funds in on a dramatic rise. “While volatility tends to create discomfort in many circles, that is where hedge funds make a living”, he adds.
Read more: Gareth Henry on Quantitative Investing
The financial advisor summarizes on some of the recent changes adding to the popularity of hedge funds among which include: the reduction of fees, change of liquidity rules, and liberalization of their overall structure. Fund managers are now covering some of the expenses that they once passed on to their clients. This has helped to enhance the growing popularity of hedge funds.
While citing growth statistics and trends, Gareth provides solid support for being bullish on hedge funds. He sums up defining some of the popular misconceptions regarding hedge funds. Although some have contended that hedge funds were the cause of the 2008 financial crisis, it is Gareth Henry who refutes this. He cites the role of media stoking investment fears and believes there are existing structures in place to prevent that from happening. He states, “Hedge funds were as much a victim of the worst financial crisis in a century as they were the cause. High net worth investors with patience and willingness are seeing the rewards.”
Gareth Henry is expert in private credit and hedge funds. Gareth Henry has years of experience with alternative investments. Gareth Henry graduated with a degree in Actuarial Mathematics and Statistics from Heriot-Watt University in 2001.