Gareth Henry is an alumnus of the University of Heriot-Watt where he studied for his B.S. degree. He specialized in actuarial mathematics before serving various companies including Fortress Investments. Drawing from his vast experience as an investor relations specialist and alternative assets management, Gareth Henry holds that successful alternative assets management is a product of experience and careful study of the market forces. He has developed a vast network comprising of managers of sovereign wealth funds, hedge funds, and pension funds. He argues that to counter market uncertainties, investors should diversify their investment portfolio in alternative assets such as bonds, hedge funds, and equities. However, he cautions that successful diversification calls for finding the right mix between the various assets. He notes that this is because these alternative investment vehicles have inherent advantages and disadvantages.
Comparing Various Conservative Alternative Investment Vehicles
Gareth Henry observes that equities perform better than other conservative investments despite being at high risk of poor performance in case there is a decline in bear markets. Investors in equities also enjoy the luxury of realizing a return on investments without the need for micromanagement. However, it is impossible for the performance of average investors in equities to eclipse that of major market indices. According to Mr. Henry, though who invest in bonds enjoy a more steady income compared to equities investors. Moreover, investors in bonds are sheltered from the performance of the interest rates as they can still make a return on investment in the form of capital appreciation. But he warns that such investment comes with increased default risks and lower ROI compared to equities.
On hedge funds, Gareth Henry opines that they enjoy greater security from the effects of market meltdown as they based on shorting stocks. Therefore, hedge funds come with a higher ROI compared to other conservative investment options. Despite these advantages, he warns misjudging of the market direction can lead to significant financial losses. Volatile nature of hedge funds exacerbates the risk of financial losses. He also believes that hedge funds managers charge high fees which put a lot of pressure on hedge fund managers. Read more on