Side Pockets – The Best Of Both Worlds

In a marketplace that is becoming more crowded and competitive by the day, many multi-strategy hedge funds have begun looking beyond their traditional hunting grounds for new opportunities.

The general consensus is that, on average, private equity funds have been outperforming hedge funds as of late and many hedge funds have now seen the tremendous potential offered by the comparatively illiquid assets normally considered more the domain of those private equity funds and have decided it is time that they got into the fray. In a break from the norm, a growing number of hedge funds have begun broadening their horizons by investing significant proportions of their portfolios in an increasingly unusual and often illiquid array of assets.