Comments on: Buy government bonds – eventually http://monevator.com/2009/11/16/buy-government-bonds/ Make more money, invest profitably, retire early Thu, 09 Feb 2012 22:57:41 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: The Investor http://monevator.com/2009/11/16/buy-government-bonds/comment-page-1/#comment-15428 The Investor Tue, 17 Nov 2009 14:12:24 +0000 http://monevator.com/?p=2972#comment-15428 Thanks for the idea pkora. I've got to say I'm pretty sceptical of the chances of the average absolute return fund doing what it says on the tin - in the articles I've read looking at 2007/2008, most of them lost money, albeit by less than the market (which is your point I appreciate :) ) The charges are horrible, generally, too. I'd rather smooth out returns by holding equities through the ups and downs for the long-term and higher gain, I think. Treasuries are good because as you know they are a simple, cheap (in terms of charges) way to diversify, while guaranteeing a return, albeit it lower than you'd like. Oh, I also have a fair sized holding in the Rothschild RIT Capital Trust, which tries to preserve capital (unsuccessfully in the end, due to private equity exposure blowing up in late 2008). I almost bought Lindsell Train, which benchmarks against consols (an undated government bond) too, but was spooked off after the Cadbury bid and by its exposure to Nintendo (those wavy sticks are a fad, I feel!) Again, it lost money but did better than the market. I appreciate these aren't classic long/short hedge funds or whatever. They are cheap and liquid though. Thanks for the idea pkora. I’ve got to say I’m pretty sceptical of the chances of the average absolute return fund doing what it says on the tin – in the articles I’ve read looking at 2007/2008, most of them lost money, albeit by less than the market (which is your point I appreciate :) )

The charges are horrible, generally, too. I’d rather smooth out returns by holding equities through the ups and downs for the long-term and higher gain, I think.

Treasuries are good because as you know they are a simple, cheap (in terms of charges) way to diversify, while guaranteeing a return, albeit it lower than you’d like.

Oh, I also have a fair sized holding in the Rothschild RIT Capital Trust, which tries to preserve capital (unsuccessfully in the end, due to private equity exposure blowing up in late 2008). I almost bought Lindsell Train, which benchmarks against consols (an undated government bond) too, but was spooked off after the Cadbury bid and by its exposure to Nintendo (those wavy sticks are a fad, I feel!) Again, it lost money but did better than the market.

I appreciate these aren’t classic long/short hedge funds or whatever. They are cheap and liquid though.

]]> By: pkora http://monevator.com/2009/11/16/buy-government-bonds/comment-page-1/#comment-15424 pkora Tue, 17 Nov 2009 12:45:28 +0000 http://monevator.com/?p=2972#comment-15424 Ever thought about holding part of your portfolio in absolute return funds or hedge funds instead in a attempt to minimise some degree of volatility? Ever thought about holding part of your portfolio in absolute return funds or hedge funds instead in a attempt to minimise some degree of volatility?

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