I believe that HFA will probably struggle in the medium term. It...

I believe that HFA will probably struggle in the medium term. It is my understanding and experience that the majority of HFA’s inflows come from financial advisers. Now that funds like the HFA Diversified Investment Fund are frozen, this would create reluctance for advisers to use their products.

Also some of the research houses which advisers rely on to help them chose the managed funds they recommend have many of the HFA funds rated “On Hold” which further limits the ability of adviser to recommend HFA funds.

Finally and I think most importantly you have HFA’s public face in Jonathan Pain stating that the future lies in Asia and that it is the best place long term for funds to be invested. On the other hand at the same time the HFA International Share Fund was significantly net long the US and Europe and either short or just slightly long Asia.

That never looks good when you come out saying one thing and doing another.