Hedge funds
Hedge funds are lightly regulated investment vehicles for the sophisticated investor, which aim to deliver positive returns that are uncorrelated with the broader market performance. Unlike traditional long-only fund managers, managers of hedge funds have the ability to invest in a variety of financial instruments and do employ a broad range of strategies, including the use of leverage and short selling. This enables them to potentially deliver attractive risk-adjusted returns in both rising and falling markets. The diversification benefits that hedge funds bring to a portfolio make them an attractive addition to the sophisticated clients' portfolios.
Due to the complex nature of strategies and instruments that hedge funds invest in, the role of the fund manager is crucial in ensuring that investment goals are achieved. At Barclays Wealth a rigorous fund selection process is employed to ensure that only the highest quality funds are offered to our clients. This is achieved through a dedicated team of analysts who have significant experience in due diligence, manager selection and portfolio management.
Whilst hedge funds offer the potential to deliver attractive returns and can bring certain diversification benefits to a portfolio, they do have several associated risks. Hedge funds are less liquid than traditional investments, generally with monthly, quarterly or annual dealings. Certain strategies employ leverage, which implies that a relatively small movement in the price of the underlying securities can result in a large movement in the value of the fund. An investor in a hedge fund may incur substantial losses.
Barclays Wealth offers several avenues through which clients who are experienced in hedge fund investing may gain exposure to hedge funds within their portfolios. These include investments in internally managed "fund-of-fund" products that invest in portfolios of underlying hedge funds, as well as investments in fund-of-hedge fund products managed by third parties. For eligible clients Barclays Wealth can also construct a fully bespoke portfolio comprised of single manager hedge funds.
Learn more about our hedge funds
Please contact us to help you develop an appropriate investment strategy in hedge funds.
Legal information
The products and services described on this page are provided by the following companies, which are part of Barclays Wealth: Barclays Bank PLC in England & Wales, Barclays Bank (Suisse) SA in Switzerland, Barclays Private Bank & Trust Limited in Jersey, Barclays Private Bank & Trust (Cayman) in Cayman Islands, Barclays Private Bank & Trust (Isle of Man) Limited in Isle of Man, Barclays Private Asset Management (Monaco) SAM in Monaco. For further information on these companies and Barclays Wealth please read the Important Information.
