Abstract

Liquid absolute return funds have been a key beneficiary of regulatory changes, resulting in substantial inflows. Critics of these vehicles—which bring hedge fund strategies to the masses—are pointing to their performance during the recent market turmoil as proof that unsophisticated investors should not venture there. In <b>Liquid Absolute Return Funds: <i>An Alternative to Alternatives?</i></b>, published in the Fall 2015 issue of <b><i>The Journal of Wealth Management</i></b>, <b>Joachim Klement</b> of <b>Wellershoff &amp; Partners</b> examines the performance of liquid alt funds and explains how they may be viewed in a portfolio context. He warns investors to look out for limited track records and owner concentration, and he discusses the trade-off between liquidity and fees. <b>TOPICS:</b>Mutual funds/passive investing/indexing, real assets/alternative investments/private equity, statistical methods, performance measurement

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