WEST PALM BEACH, FL (HEDGECO.NET) – Hedge fund investment strategies can help financial advisors achieve a higher risk-adjusted return, according to Gene Swanzey, of FBR Investment Management Inc.According to Mr. Swanzey, many financial advisory professionals have been employing such instruments in the construction of Modern Portfolio Theory [MPT] used in asset allocation among differentinvestment instruments such as stocks, bonds, and cash.

Swanzey in an article titled �Hedge Funds can compliment MPT� said, �Hedge funds offer a significant complement to MPT and should be implemented when devising investment portfolios. First and foremost, hedge funds have consistently provided non-correlated returns, even in an increasingly correlated global marketplace.�

Lately, prominent investment actors such as Warren Buffet, Alan Greenspan, and William Donaldson have criticized hedge fund strategies. Swanzey also noted that �Contrary to popular perception, hedge funds have also been shown to reduce the volatility of portfolio returns. Armed with a full array of portfolio management, hedge fund managers have greater flexibility to adjust to, and take advantage of, turbulent market conditions. Finally, hedge funds generally have been shown to provide enhanced returns over time, primarily by outperforming equity markets during down periods�, according to Swanzey.

Mr. Gene Swanzey is vice president of FBR Investment Management Inc.; an SEC registered investment advisor subsidiary of Friedman, Billings, Ramsey Group Inc. Mr. Swanzey can be reached at gswanzey@fbr.com.

Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net

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