The Case for Hedge Funds in Optimal Portfolios

While hedge fund performance can be cyclical, as it is with equity and fixed income markets, an allocation to hedge funds can provide compelling attributes in an investment portfolio over the long run. At a closer look, hedge funds have been accretive to portfolios over the last 15 years, and in each of three 5 year segments. From a historical perspective across different market cycles, a case can be made that now is good time to allocate to hedge funds.