Hedge funds

FATHEROFTWO_2

Im loading up with absolute funds in both UK and Europe at present to currently 17 percent of my folio.

My concern is inflation and interest rates but I dont think interest rates will rise just as Anthony Bolton said for at least a year,

However this information is well documented and when the markets will react to this is anybodys guess but I would like to keep ahead of the market if I can.

Now the market tend to factor in futures from 6 to 9 months I believe so I reckon April 2010 might be a good time to downsize on the amount of bonds I have.

Question is where do I put the mone ?

Possibly into Gilts as they might be starting to look like better value Or Mid cap/small cap or posibly oil which should rise when the market is convinced that we are fully back into growth encouraging more oil usage.

Any thoughts if this policy may be correct or what is the thoughts of the more experienced members?

fg22

FT article on absolute return funds;
http://www.ft.com/cms/s/2/510b040e-af7a-11de-ba1c-00144feabdc0.html

Aegis

The_White_Horse wrote: »

i don't know why people bother with these funds. overall, you're probably better off with a savings account.

Well, BlackRock's UK Absolute Alpha has returned about 47% in a little over 4 years, an annualised return of 9.2% with gains attributed to capital gains tax rather than income tax (i.e. 18% after the annual exemption vs 20% or 40% for most investors). Which cash accounts could have generated even half of that in a similar timescale while retaining the flexibility to sell and get your money out in a day or two?