Federal Street eLetter Masthead 2

July 2010 
Jack Be Nimble, Jack Be Quick,
Jack Jumped Over the Candlestick...

... Or How Hedge Funds Can Navigate Market Volatility and Have The Ability To Generate Better Risk Adjusted Returns.
There's no doubt that a few high-profile, high-flying fund managers have earned hedge funds a bad rap in recent years.  But we at Federal Street Advisors believe that hedge funds play a healthy role in client portfolios.
 
In our new white paper, Kristin Fafard, CFA - our Director of Research; Mark Peters, CFA - Principal; and Richard M. Tardiff, CFP, JD - our Head of Financial Planning, offer their perspectives on hedge fund investing. We'll offer a brief overview of hedge fund strategies and terminology, explain how they differ from other investment vehicles, discuss why the current market environment is advantageous to hedge funds, and reveal some of the opportunities our hedge fund managers are poised to embrace.  We'll also offer a checklist for fiduciaries to consider when conducting due diligence on hedge fund managers. Click through to read the new white paper.

Hedge Fund Guidelines for Fiduciaries
Modern fiduciary laws now allow investment in hedge funds and other types of investments that use complex or leveraged approaches.  Because hedge funds offer potential risk reduction and return enhancement unavailable from long-only managers, we argue that fiduciary responsibilities actually require careful consideration of hedge fund investments. 

Click through for our new Hedge Fund Due Diligence Checklist. 
A woman walks into a coffee shop, opens her newspaper to the financial pages, and orders a latte.  The Barista points to her newspaper and says "These market gyrations are really something, how are you holding up?" She leans over and confides, "I slept like a baby last night. I woke up every hour and cried!"

The Big Short





Book Pick

Recommended by our Senior Research Analyst, Benjamin R. Deschaine, MSF, CAIA
FEDERAL STREET ADVISORS   
www.federalstreet.com      617-350-8999 

Providing conflict free investment consulting and wealth advisory services to individuals and nonprofits, with particular expertise in:   Customized Portfolio Design,  Alternative Investments,  Socially Responsible Investing, Philanthropy, Endowments & Foundations and Working With Complex Families.