AIMA/CAIA: Portfolio Transformers - Examining the role of hedge funds as substitutes and diversifiers in investor portfolios
AIMA & CAIA Association
Published: 16 November 2015
Comparatively little educational material about hedge funds and other alternative investments has been written for trustees and other fiduciaries. And so at the beginning of 2015, AIMA and the CAIA Association embarked on a long-term joint programme to produce accessible information about hedge
funds for this important but under-served audience. AIMA and CAIA’s frst paper, titled ‘The Way Ahead: Helping Trustees Navigate the Hedge Fund Sector’, set out hedge funds’ core value proposition while objectively discussing some of the challenges that investors face when considering a hedge fund allocation. In this second paper, ‘Portfolio Transformers: Examining the Roles of Hedge Funds as Substitutes and Diversifiers’, AIMA and CAIA have sought to build on this foundation by providing a more detailed guide to how hedge funds can adapt and diversify portfolios of investors such as endowments and foundations, pension funds, insurance companies, private family offices and sovereign wealth funds.