Small funds with some unorthodox approaches

Last year’s model funds showed that when investors do their homework, hedge fund exposure can deliver superior returns both in relative and absolute terms. Calculated as an equally- weighted portfolio, the five funds we selected last year generated a net... More

Last year’s model funds showed that when investors do their homework, hedge fund exposure can deliver superior returns both in relative and absolute terms. Calculated as an equally- weighted portfolio, the five funds we selected last year generated a net return of 3.19 per cent in the year to June 2012. That was nearly 6 full percentage points better than the average return of the five strategies cited. And it was more than 7.5 percentage points better than the BarclayHedge. Jonathan Kanterman Less