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August 13, 2005
Investors frustrated with low returns ask for more risks!
Low returns on investment are leading hedge fund investors to demanding their fund managers to take more risks. To most investors, high risk means high returns but this is not a wise move. Yes, the returns up to now in 2005 have been anything but encouraging. But what the investors need to know is that like any other industry, there are some cyclical trends in Hedge funds market. Low volatility of the market has let to fewer opportunities to make profits. This is the main factor for the hedge funds scoring returns in the range of 3.5%. This obviously is causing the investors to become frustrated and hence the demand from their end to increase risk taken by fund managers. Hence industry experts feel that the investors should lie low for a while instead of pressuring their fund managers to take unwise risks. Hedgego.net reports:
“A hedge fund professional who spoke on condition of anonymity said, "There is a huge set of investors out there that think that hedge funds' return patterns will skew to the positive, regardless of volatility, and that's just not the case."
Read More: Hedge Fund Investors Pressure Managers for Riskier Investments
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