Hedge fund strategies for private investors – high returns beckon

Frankfurt The persistent phase of low interest rates is ensuring that more and more private investors are getting involved in alternative asset classes. This also includes mutual funds that are based on the strategies of hedge funds.

These speculative professional investors pursue different strategies: They bet on price differences on various stock exchanges, try to take advantage of takeover offers, and bet on falling prices on the stock exchanges with so-called short sales. Private investors cannot get in here directly because of the required investment sums in the millions, but specialized mutual funds remain as a way out.

In general, in the opinion of asset managers, alternative investments such as hedge funds are only suitable as an addition to a private custody account, which means that, as a rule, no more than ten to 15 percent of the liquid assets should be allocated there.