Investing in hedge funds

Our holistic approach to constructing a hedge fund solution integrates rigorous manager research; extensive operations and market risk analytics; as well as active and disciplined portfolio management.  Our goal is to exceed your expectations.

Why invest in hedge funds?

One of the main benefits of hedge fund investments are to provide diversification at the total portfolio level. The return potential is another attractive characteristic. Studies show that adding uncorrelated assets to a portfolio reduces total portfolio risk and therefore may improve the risk adjusted return of traditional portfolios.

We recognize the money we manage represents the hard work and savings of real people like you. Or, if you represent a non-profit organization, the money needs to be there in the long run to fulfill important missions. We understand what's at stake. That's why we work to deliver real, lasting value. And that's why we're committed to our purpose: improving financial security for people.

Why choose Russell Investments for your hedge fund investments?

"Russell Investments is committed to providing alternative investment solutions to clients and our capabilities in the hedge fund space are broad. The entire financial services industry has learned lessons from the global financial crisis and the resulting market illiquidity," says Lance Babbit, Senior Portfolio Manager. "Consequently, liquidity matching, governance and risk management have become focal points industry-wide, and many providers like us are adopting a more modular approach to fund construction."

Benefits of working with Russell Investments for hedge fund exposure include:

  • Consistent process, governance and oversight
  • Highly-experienced investment professionals
  • In-depth global manager research
  • Diversified access to quality hedge fund managers
  • Disciplined portfolio construction
  • Focused risk management
  • Rigorous operational due diligence
  • Ongoing monitoring of managers and market opportunities

Access to global hedge fund opportunities

Our objective is to bring together some of the world's best hedge funds in multi-manager portfolios and our investment research capabilities include the following strategies:

  • Relative Value
  • Event Driven
  • Equity Hedge
  • Tactical Trading

Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

In general, alternative investments involve a high degree of risk, including potential loss of principal; can be highly illiquid and can charge higher fees than other investments. Hedge strategies and private equity investments are not subject to the same regulator requirements as registered investment products. Hedge strategies often engage in leveraging and other speculative investment practices that may increase the risk of investment loss.

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