Adding hedge funds basket lowers portfolio risk & increase returns for client


During scheduled client review meeting, one of our clients brought new portfolio held at a major Swiss bank. During the review, Toledo Capital observed a high concentration on ‘in-house’ funds which have an overweight of equities and less diversification across various asset classes causing lower performance. 

The client was unhappy with the negative returns on his portfolio during last year and was concerned. In a rising interest rate environment and increased geo-political factors, the current portfolio would continue to suffer from volatility & lower returns unless it is restructured.


Toledo Capital presented the client with a more balanced and structured portfolio adding a basket of hedge funds to the mix of strategies. Due to their low correlation to other asset classes, using hedge funds clearly lowered the volatility on the overall portfolio while generating ‘alpha’ or risk adjusted performance.


The client is delighted that Toledo Capital demonstrated 8.4% returns on the hedge funds basket last year (if he had invested on Jan 1, 2022) and already positive performance for year to date in 2023. 

The client shared that he has positive experience with his friends and introduced Toledo Capital to his business circle.


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