Argus Financial Limited (AFL) last week introduced the first of a series of private seminars for existing and potential high net worth clients at the National Gallery.

AFL is a joint venture between the Argus Group and Cidel Financial Group and is based on Trott Road in Hamilton.

Last week’s seminar focused on capital preservation investment strategies, various types of hedge funds that AFL utilises (including relative value/arbitrage, event driven, directional/tactical) and how they can be used improve the efficiency of investor’s portfolios.

The seminar also covered the differences between a traditionally balanced portfolio and an AFL balanced portfolio and how this alternative approach can protect investments

“There are a lot of misconceptions about utilising hedge funds to increase risk or increase returns. Our philosophy is to use a basket of hedge funds to remove risk from portfolios,” Bill McKay, Cidel AFL’s lead portfolio manager, said.

“We don’t have a traditional asset allocation approach that many institutions have and we feel that us gives us an advantage when it comes to minimising loss and preserving capital.

“Sometimes when you say the word hedge fund it rings an alarm bell that there is a lot of risk involved.

“We want to educate investors about exactly what that term means and explain in very broad terms hedge fund strategies and how we are using them in portfolios as a complement to traditional asset allocation.

“We think we have a unique investment philosophy and we find it resonates very well with private or high net worth individuals,” Henry Perrin, AFL COO, said.

According to Mr. Perrin, AFL clients range in size from $10,000 to $100 million and the range of products, services and portfolios offered by AFL enables the company to provide one-stop investment solutions to meet the needs of every investor.

Craig Rimer, director of AFL, said the company’s investment strategy does not focus exclusively on hedge funds. “I think you have to understand what risks clients are willing to take and comfortable with and then create the best portfolio with a strategy which is more suited to the client’s risk return profile than a traditional basket of stocks,” Mr. Rimer said.

“Just to be blindly in a equity fixed income portfolio and not understand the downside is the biggest mistake people make.”

For more information on AFL, call 294-5706 or log on to www.argusfinancial.bm