Hedge Funds

Meeting chaired by Rodney Tye

John Gordon & Andrew Sheaf

Directors, Cazenove Capital Management

28 November 2005

These leading City Brokers have under management a fund of hedge fund for charities. Very large sums are invested in this sector. Speakers were asked to suggest when charity trustees (like our own) should consider such a step. Should other investors do the same?

Charity investors broadly have a choice for investment of ordinary shares (equities); bonds (fixed interest investments); interest bearing deposit accounts; and property. However Hedge Funds offered another choice. A wide range of different financial transactions were covered in any one investment, to spread the risk. One aim of the Managers was to avoid the major fluctuations of the equity market and to achieve a steady advance.

In general discussion it was conceded that Hedge Funds were not so closely regulated, but this was changing. Ordinary investors could buy shares in Cazenove ABSOLUTE RETURN TRUST.

By the end of the evening those present certainly felt better informed, but probably still regarded Hedge Funds as an investment for the brave.

Rodney Tye