Hedge Funds
Diversify your portfolio with hedge funds
Hedge funds' flexible approach can help improve a portfolio’s performance during market downturns.
At HSBC Asset Management, we employ a multi-strategy approach that filters the hedge fund universe to find what we believe to be the best funds for our clients.
The potential benefits of investing in hedge funds
- Diversification
Low correlation to traditional long-only assets.
Improved risk return profile by potentially lowering total portfolio volatility. - Flexibility
Well positioned to take advantage of changing market conditions.
Adaptable to the evolution of regulation and prevailing asset class volatility. - Absolute returns
Potentially benefit from both rising and falling prices through short selling.
Access to return streams inaccessible in traditional investments (e.g., special situations or distressed debt investing). - Aligned interests
Typically, the manager's own money is invested ("skin is the game").
Fee structures consist of a management fee and a performance fee.
The value of investing through a multi-manager approach
 Expertise Backed by well-established investment processes and well-resourced, experienced investment teams. |
 Diversification Allows diversification across managers and strategies. |
 Access Aims to offer access to leading hedge fund managers which may be closed to new investors. |
 Scale Investing as part of a large asset base offers the potential for negotiating advantages with hedge funds. |
Investing with HSBC Asset Management
 Philosophy As a people business, identifying talent and |
 Experience Our extensive experience and critical mass can be |
 History We have been selecting and investing in |
Contact us
Key Risks
Hedge fund investments involve significant risks and may not be suitable for all investors. The value of investments and any income from them may go down as well as up, and investors may not recover the amount originally invested. Past performance is not a reliable indicator of future results. Currency fluctuations may also impact returns.
Regulatory risk: Hedge funds are typically domiciled in offshore jurisdictions and may be subject to limited regulatory oversight. This may expose investors to additional legal and operational risks.
Liquidity and Redemption Risks:
- Gating: Under stress conditions, redemptions may be partially restricted on a pro-rata basis
- Side Pockets: Illiquid assets may be separated from the main portfolio, limiting redeemability
- Suspension of redemptions: In exceptional cases, all redemptions may be temporarily suspended
- Lock-up periods: Redemptions may be limited for extended periods, often subject to penalties for early withdrawal
Transparency and access: Hedge funds may limit disclosure of holdings or strategy, resulting in reduced transparency. Minimum investment requirements can be high (e.g. USD 500,000).
Manager Risk:
There is a risk of a fund failure due to poor performance or operational challenges. Comprehensive due diligence is essential.
The risk factors described above are not exhaustive. Prospective investors should seek independent financial advice before making investment decisions.
Important notice for Swiss investors: Some hedge funds referenced may not be authorized for distribution to non-qualified investors in Switzerland under Art.120 of the Swiss Collective Investment Schemes Act (CISA). This material is intended exclusively for professional investors within the meaning of the Swiss Financial Services Act (FinSA).
Capital is at risk. Please consult the fund’s prospectus and offering documents before investing.
Important Information
The presented fund is not authorized for public offering in Switzerland under Article 120 of the Federal Act on Collective Investment Schemes (CISA, KAG).
This material is exclusively intended for professional investors as defined in Article 4(3)(a-g) of the Swiss Financial Services Act (FinSA, FIDLEG).
This material is not intended for:
- Professional clients who are not institutional clients under Article 4(4) FinSA and who wish to opt-in for treatment as retail clients under Article 5(5) FinSA Or
- High-net-worth (HNW) retail clients and private investment structures created for them, who may declare themselves as professional investors (opting out)
Additional opting-in and opting-out options are available under FinSA. For further details, please refer to our website: https://www.assetmanagement.hsbc.ch/. If you wish to change your client categorization, please inform us.
Important Notice
When distributing this material solely to professional investors, the local business developer/client services team must include a copy of the Key Information Document (KID) and the Prospectus in the documentation. Please refer to the investor category overview for further details. HSBC Global Asset Management (Switzerland) AG having its registered office at Gartenstrasse 26, PO Box, CH-8002 Zurich has a license as an asset manager of collective investment schemes and as a representative of foreign collective investment schemes. Disputes regarding legal claims between the Client and HSBC Global Asset Management (Switzerland) AG can be settled by an ombudsman in mediation proceedings. HSBC Global Asset Management (Switzerland) AG is affiliated to the ombudsman FINOS having its registered address at Talstrasse 20, 8001 Zurich.
Investments in financial instruments carry general risks. For further details, please refer to the Swiss Bankers Association (SBA) brochure: "Risks Involved in Trading Financial Instruments."