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  • Essay / Long/Short Equity Fund - Investing in 2019

    Many people want a fund that is unrelated to the markets, has low volatility and offers the desired diversification. It's hard to get a reliable long/short stock fund. Previously, these funds were capable of providing returns of 6 to 8 percent per year, but selection of funds is a difficult task. The best performing funds have a direct correlation with the markets and are sensitive to market corrections. Returns depend on the strategy adopted by investment managers, which may be atypical – traditional or based on certain quantitative mathematical calculations involving returns and rates for each individual stock. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essay Although fund managers adopt market-neutral strategies, this can lead to negative growth, such as in 2019, when Most long – short – stock market neutral funds and some large hedge funds were unable to provide the desired returns due to high volatility, rising interest rates and changing global monetary policies . In 2015, Ben Wallance was chosen as one of the best funds – it was a traditional long/short fund and those looking for a short fund opted for Jupiter's absolute return. There can be hundreds of funds offering variable returns and many offer mechanisms to take advantage of market unpredictability. In 2016, L&G UK Alpha Trust generated returns of 6.4 percent and Schroder Recovery 5.17 percent. In 2010, these funds were very successful, delivering mostly upside and no losses, but in 2019, U.S. investment grade credit had one of the worst results and some risky options were able to offer better returns. Currencies fluctuate wildly and some currencies have suffered extreme losses. The first six months of 2018 have been challenging for multi-asset investing. The impact of the trade war has had a long-term impact on multi-asset investments, where investors have been advised to increase the holding period to reduce risks. The MSCI World High Dividend Index fell several points during this period and many dividend-paying stocks struggled to maintain their rates. . Jupiter has introduced new funds in the first six months and the fund plans to introduce additional new options in September 2019. It will be a multi-asset income fund with a long-short equity option. Likewise, the European equity fund will be launched in the coming months. These funds will include various options to encompass global funds which will have gates and a mix of stocks, bonds and other funds. Most fund managers believe in multi-asset investing where the exposure will be diversified to improve performance. Diversification will help manage stress and uncertainty, or it will contain some fixed income bonds. These funds can achieve returns of up to 8 percent, especially in conditions where 35 percent of the portfolio is made up of higher-yielding stocks. Keep in mind: this is just a sample. Get a personalized document from our expert writers now. Get Custom EssayDue to recession fears, fund managers are reducing risks and investing in safe, long-term assets. Investors seek fixed income options for better risk protection.