Overcoming Misconceptions about Liquid Alternatives

Abstract

With growing interest in liquid alternatives, the ability of these products to provide a hedge-fund-like experience is in question. At the aggregate level, liquid alternatives are not proving as successful as hedge fund competitors, but there are signs that the depth and breadth of the industry is increasing. Although the liquid alternatives industry is still in its infancy, investors equipped with the proper tools and analytical framework can overcome the deficiencies currently present in this market to achieve results more representative of the hedge fund universe.

TOPICS: Real assets/alternative investments/private equity, mutual funds/passive investing/indexing