Hedge funds – how to diversify your portfolio

Hedge funds are typically the preserve of wealthy investors, but investment trusts provide access. How can you diversify your hedge fund portfolio?

Close-up on a trader watching the stock market behavior on his laptop
(Image credit: Hispanolistic)

Retail investors often overlook hedge funds, as these vehicles are not aimed at them. Hedge fund managers are only allowed to market themselves to wealthy investors, with many demanding a minimum stake of at least £100,000. 

Hedge funds are not like the investment funds available to the everyday investor. They are lightly regulated and can invest in a wide range of assets. The most common fund used to be the long/short equity fund. 

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.