Building a New Strategy

Tune in this Saturday, to Beyond Funds Market Weekly, as I wrap up my ten themes for rebuilding your portfolio after the lost decade. Learn how you can strategize, with an advisor, to implement new and fresh ideas after the devastating markets of the first decade of this century. Your investment strategy may need to change after the lessons we have learned from the two major market meltdowns of the last ten years. Tune in next week to determine if you can benefit from a new and different approach to your financial future.

Learn how these 10 key themes matter to you;

1) Diversification means more than just stocks from around the world
2) Move up the balance sheet…consider bonds
3) Learn about convertible debentures as a stock alternative
4) Seg funds make sense to keep you in the market and secure your retirement income
5) Guarantee your principal with a strip bond
6) Look at ETFs as a mutual fund alternative
7) Buy at least one fun or interesting stock this year
8) Use covered calls to generate income
9) Look at a hedge fund for diversification
10) Take a serious look at the cost and performance of your mutual funds

Today's show

Key topics from today's show


I discussed the subject "What is a Hedge Fund?" and "Why Invest in Hedge Funds?"

Hedge funds can increase portfolio diversification and provide some protection against market downturns.  A hedge fund is a private pool of assets with an investment objective to generate positive returns under all market conditions. It employs a wide range of financial instruments and alternative investment strategies. The fund depends less on market direction and more on the skill of the fund manager than long-only portfolios.

I then covered the defining characteristics of a hedge fund.  A hedge fund tends to display a low correlation to traditional markt indices. It has an absolute return objective with no benchmark considerations. Typically, it pays a performance-related incentive fee to the fund manager in addition to a management fee.  The manager  pursues a wide variety of strategies such as concentrated positions, leverage, arbitrage, and stock shorting.  These strategies are not for everyone, but are the principal reason hedge funds are able to minimize their correlation to the market.

Typically hedge funds are structured as a limited partnership.  Since most hedge funds are privately placed, provincial investment minimums apply.  This should be discussed with an advisor.  If you wish to discuss one on one, visit http://www.jeffwareham.ca/, or email me at jwareham@mgisecurities.com

Next Saturday's Show

Thanks for tuning in to Beyond Funds Market Weekly.

Tune in Saturday at 9:30 A.M., for Beyond Funds Market Weekly. I will be continuing my discussion on lessons investors may learn from major pension plans. Many of the most important principles of investing are followed by pension plan administrators, and most traditional mutual fund strategies miss some, if not many, of these principles. Real estate, options, managed futures, commodities, and hedge funds are all financial instruments that may improve the overall risk adjusted return of your portfolio. Pension managers understand these principals, but I rarely see individual investors taking advantage of this opportunity to diversify. Tune in this Saturday, and learn how you, as an investor, may improve your returns, and reduce your risks, by following these basic principles..