Hedge funds: false dawn or happy ending?

Telegraph.co.uk- If you are looking for a safe haven in the current volatile markets, evidence suggests that investment trust funds of hedge funds may be the place to look.

This may be a surprise to many who only associate hedge funds with risk. But, as the table shows, the average performance for the investment trust hedge fund sector was better than that of the average British investment trust or unit trust/Oeic.

These funds have also beaten the FTSE All Share index over the past one, two and three years. And while investors in the average unit trust/Oeic and the average investment trust have lost money over the past year, in most cases investment trust funds of hedge funds produced a positive return.

Nicola Horlick, the City "superwoman" who now heads Bramdean Asset Management, says none of this should come as a surprise.

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