The last twelve months has seen a huge level of disruption to not only our working lives but also our everyday lives. It has become increasingly important to be able to communicate through different mediums and not just the traditional meeting.
Whilst we believe there will never be any substitute for the face to face meeting and the social interaction that it brings, we are concious that we must provide information and use different methods of communication to stay in touch with our clients.
Over the coming months we will be enhancing how we send secure information and also making available our updates across a number of social media platforms.
Hedge Funds have a mixed history and there have been some pretty serious failures over the years that mean when some of us think of Hedge funds we see visions of Gordon Gekko telling Bud Fox that "Greed is Good" or remember Bernie Madoff's famous Ponzi Scheme that was estimated to have failed with $65 billion of losses and resulted in some serious jail time of 150 years for the culprit!
However, with some due diligence and sensible research picking the right one can make a significant contribution to portfolios.
There are many different types from Long/Short Equity Strategies to Global Macro - the main advantage is that they often have a low correlation to other assets creating diversification, reducing volatility and offering retail investors access to complex strategies that are often the preserve of the ultra-wealthy
Andrew has posted a short summary about Crypto Currencies on our website - here are some key issues he identified
- Whilst there is limited supply of Bitcoin, there is not a limited supply of Crypto Currencies; we could easily see investors move to other digital currencies negatively impacting the price of Bitcoin.
- Governments could get rid of it through heavy regulation leading to a slump in demand.
- It is not a medium of exchange, and most businesses do not accept Bitcoin as payment for goods.
- How protected is it from cyber-attack? Is it as secure and private as some claims?
- With reasonable frequency Bitcoin has fallen by 80% or more – is the volatility worth it?
Charles Ponzi owned a small firm that sold its "IOU's" to the people of the Boston Suburbs in the 1920's.
These IOU's proved very popular as Mr Ponzi promised to pay each holder 45% interest each year! How did it do this?
It transpired that Mr Ponzi had to sell a new IOU to raise the money to pay the interest to someone who already owned an IOU - as long as he kept selling the IOU's there would not be a problem!
Things starting to go awry when people asked for their money back.....
Unfortunately there wasnt any money there and after eighteen months of enjoying the good times Charles Ponzi went to prison for two years - he was released just in time to sell Florida Real Estate in the boom of the mid-1920s!
We have already highlighted that this years Budget will eventually lead to tax rises so ensure that your financial assets are held in tax efficient wrappers is crucial - with the end of the Tax Year fast approaching dont miss out on using allowances! To double check you are being as tax efficeint as possible just give us a call and we can talk you through the options
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We hope you enjoyed our Newsletter - head over the to the website if you are interested in finding out more about us or reading the publications we have posted over the last six years
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