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Seven reasons to invest in Managed Forex Accounts
1. Focus On Absolute Versus Relative Returns

Hedge funds strive to meet 'absolute return' investment objectives as opposed to 'relative return' objectives, meaning hedge fund managers don't just focus on beating an index - they aim to deliver positive returns regardless of market direction.

Unlike mutual fund managers who are usually tied to a benchmark, thus limiting their potential returns, hedge fund managers have the freedom to generate returns from a variety of strategies, limited only by their risk controls.
 
2. Strong Risk Adjusted Returns with Lower Volatility

Historically, long/short equity funds have consistently delivered strong risk-adjusted returns with lower volatility than the returns of major stock market indexes.

Because of their ability to use leverage and short sell, hedge funds have a distinct advantage over long-only mutual funds. They can increase their long exposure to the market to generate additional returns, or increase their short exposure when a more defensive stance is required. Although short selling and leverage may increase risks, the strategy focus has been seeking risk adjusted returns.

Because mutual funds are long-only strategies, they are typically generating returns in market upswings and losses in market downswings.

3. Strong Performance In Up And Down Markets

Hedge funds have demonstrated their ability to protect capital in down markets and provide equity-like returns when markets are rising.

4. Enhanced Diversification & Portfolio Efficiency

Due to their low correlation to traditional investments, hedge funds can also improve diversification and enhance a portfolio's efficiency. The benefit to the investor is increased return for the same or lower level of risk.

  
5. Limited Asset Size

Unlike mutual funds where the manager is motivated to maximize assets under administration, hedge funds typically become closed to new investors when they reach a predetermined asset level.

A reason for this capacity limit is that asset growth beyond certain levels is often detrimental to hedge funds using strategies that require nimble trading in order to react quickly to market events.

6. Incentive Based Compensation

Unlike the fee structures of traditional mutual funds that focus on asset-gathering, hedge fund fee structures reward managers for exceptional returns.

Hedge funds attract top-tier talent because the fee structure affords greater financial rewards and personal satisfaction to managers who consistently deliver superior performance
 

7. Management commitment.

Simply stated the manager is almost exclusively compensated on the funds performance.

This alignment of interests adds tremendously to credibility and speaks for itself in indicating where the manager's focus and best investment ideas will be directed.
 

 
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