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‘Mr Hedge Fund’: The ‘scandalous’ hidden investment costs
Alan Miller, known as ‘"Mr Hedge Fund" in the UK due to his success in managing one of Britain’s first equity hedge funds, shares his top tips when it comes to trading and talks about the “scandalous” hidden costs he thinks investors should be aware of.
Alan is concerned that investors “don’t realise” the impact of all the costs and charges on their returns and that they really need to look at that before they make a decision. He says that for example if you are buying government bonds and getting a yield of 2.5 percent and it’s costing throughout the whole investment chain 2.5 percent, it doesn’t make any sense. On the other hand, if you are buying carefully selected emerging market shares and you think they are going to grow 10-15 percent per annum, then the cost is less of a factor. The important thing for investors is to have the balance between how much it’s costing, what they think the performance is going to be and to look at the risks attached to it.
He also adds investors shouldn’t be afraid to buck the trend. Alan believes that by the time you read a story on the front page of a business newspaper, “it’s normally too late”.
Overall, Alan’s top tip for investors is to try to improve the odds in his or her favour. The best way to do that is to “reduce the total cost from start to finish, try to spread it in a more diversified way", and then “make changes against the flow”. So less cost and decision making against the flow are going to improve investors’ odds of actually winning.
02:49 minutes
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