Gareth Henry: Should You Invest In The Hedge Funds Or Equity And Bond Markets?

Before venturing into private practice, Gareth Henry had built a successful career in the finance and investment industry. He even served as the head of investor relations with one of the most prestigious hedge funds in the world, Fortress Investments Group. His role then and now revolves around advising investors, both experienced and average citizens seeking to make their first investment, on the different types of investment in the market.

Through experience both as an investor relations expert and trader, he also helps these individuals explore the market and find the investment they relate most with. Here are his views on which makes for better investments between hedge funds, equity and bond markets. See more at bizjournals.com

Hedge funds

Gareth Henry holds the opinion that hedge funds, popularly known as alternative investment firms, have the greatest potential of helping a trader diversify his portfolio. He also ties their popularity with their ability to go short or long in either market thus post positive results in both bearish and bull markets. However, their biggest advantage, going long or shot in either market is also their biggest downfall given that they stand to suffer immense losses should their long or short call turn out to have misjudged the market.

Equity markets

According to Gareth Henry, Equities are the superior of bonds and cash savings, especially in the long run. They tend to perform better and post healthier long-term results compared to other cash investments liked fixed savings accounts.

Gareth believes that they derive their popularity from the fact that they allow an individual to benefit from the growth of the economy without managing a business. Their biggest shortfall, however, lies in the fact that bear markets leave a huge dent on the traders while making it hard for an average investor to compete against major market indices.

Bonds

Bonds, also referred to as fixed-income investments, may be a risk-free form of investment providing guaranteeing returns and a possible source of fixed income. But Gareth Henry believes they may not be most rewarding. Their returns on investments, through guaranteed and risk-free can’t be compared to the returns posted by either hedge funds on equity markets.

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