This module reviews the key characteristics of hedge funds including the flexibility of managers in making investments compared with traditional long-only managers. It looks at the main strategies used by hedge fund managers including directional, event driven and relative value strategies. There is then a review of the vehicles available to individual investors who wish to invest, including UCITS-compliant funds and funds of hedge funds.

The module concludes by considering the issues surrounding investing in hedge funds and the advantages and disadvantages of including them in a client portfolio.

By the end of this module you will understand:

• What differentiates a hedge fund from other funds
• The strategies employed by hedge funds
• How UCITS compliant funds can offer absolute return strategies
• The advantages and disadvantages of investing in funds of hedge funds
• The impact of including hedge funds in portfolios

CPD Points: 1

CPD Duration (hours): 1

Access: 12 months from purchase date