The Pension Fund Perspective Where do Hedge Funds Fit

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The Pension Fund Perspective Where do Hedge
Funds Fit
Chris Kemp, Caparo Group ,January 2002
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Why should you even start to consider looking at
Hedge Funds?

• For diversification
• As an alternative approach
• Absolute Value vehicle
• The current model is broke/one size does not fit
  all

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So what are the rewards

• Typical investments in September 2001
• UK Equity
• 9.1
• US Equity return
• 9.1
• Continental European Equities
• 13.0
• Global Bonds
• 0.9
• Our US Market Neutral Hedge Fund

5.5
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REDUCE RISK, VOLATILITY GET DIVERSIFICATION
The Efficient Frontier

• This is not brain surgery you just need BRAINS