LGT Capital Partners publishes new educational paper on hedge funds

18 April 2024

In our new paper “Hedge fund strategies – an introduction”, we look at the key characteristics of hedge funds and the broad range of investment strategies. Our experts explain how to gain exposure to the asset class and what role it can play in a portfolio context.

Hedge funds are investment vehicles that pool capital from multiple investors in order to invest across a diverse set of assets in both traditional and alternative markets. They employ strategies that are typically not available through traditional long-only mutual funds, and that can differ by asset class, style, region, sector and market exposure.

Hedge funds can pursue discretionary or systematic approaches. Discretionary strategies involve investment professionals making the final decision, while systematic strategies rely on computer-based models to generate investment ideas and portfolios. In a portfolio context, hedge fund investments are typically used to access additional sources of return, as well as to diversify more traditional portfolios and to mitigate risk.

LGT Capital Partners has been investing in both discretionary and systematic hedge fund strategies for 25 years. Our portfolios are designed to deliver absolute returns with downside mitigation in any market environment and are uncorrelated to traditional asset classes such as equities and bonds. We manage hedge fund investments through our proprietary Managed Account Platform that allows us to customize strategies and ensures full position-level transparency on a daily basis.


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