Benefits of Hedge Funds

A successful hedge fund provides steady returns in any market environment. An investor increases portfolio diversification by including hedge funds, as these funds execute many trading strategies with returns that are not closely correlated to returns from the stock and bond markets. Foreign investors can benefit from tax advantages provided by offshore hedge funds operating in tax-free havens such as Bermuda and the Cayman Islands. Hedge funds can give investors access to private investments not available to the general public.