Reuters – The hedge fund industry may promise top returns in all market conditions, but often a well balanced portfolio of international and U.S. stocks and bonds can deliver similar results for lessmoney, a study released on Tuesday shows.
Over the last six years, a diversified portfolio of stocks and bonds earned an average annual return of 6.3 percent, slightly more than the 5.2 percent return delivered by so- called hedge funds of funds, Presidio Financial Partners, a company that offers financial advice to wealthy clients, found.
Results for a longer period from January 1990 to March 2006 found a similar trend, the San Francisco-based firm said.
“The point is that as hedge funds become more popular, investors need to proceed with caution,” said Jeff Spears, managing director of Presidio Financial Partners and also head of the company’s investment consulting business.
