Hedge funds can take an opportunistic approach to investing
A hedge fund is a privately organized, pooled investment vehicle that can invest in publicly traded securities, currencies, commodities, interest rates and derivatives. Typically pursuing absolute return objectives, they seek to generate positive returns across all market conditions. They do this by taking opportunistic positions and employing complex investment strategies.
How can an individual investor find attractive opportunities to invest?
Investing in hedge funds independently can be a difficult proposition. Even private investors who meet rigorous qualifying standards can be at a disadvantage when it comes to making an informed investment decision. Information is a closely guarded commodity within the industry, primarily due to strict nonsolicitation regulations, as well as the desire to protect proprietary strategies. PNC, with extensive expertise and contacts throughout the industry, can help you determine if these investments are right for you and help facilitate your investment in this dynamic asset class.
Private equity can offer enhanced diversification and the potential for superior returns over the long term
Private equity -- direct or indirect investment in companies that are not listed on a public stock exchange -- can also offer investors the potential for increased diversification as well as the potential for superior returns in exchange for increased asset, financial and especially liquidity risks.
A private equity investment requires the investment of long-term capital, as returns may not be realized for several years. Since there is no secondary market, transferring or selling ownership in such an investment is typically not possible. Private equity investment is possible through pooled funds, but these funds can share the same types of risk as direct investments. However, for qualified investors with capital to invest for the long term, private equity may provide an attractive complementary alternative to the public equity market. PNC Wealth Management can offer qualified clients expertise in private equity investing, as well as a thorough due diligence process to select attractive investment opportunities for our clients.
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