Included below is Andrew Beer’s most recent article in P&I, which was featured in the Industry Voices section:
Liquid alternatives – 2.0
Liquid alternatives are broadly defined as strategies that are available in registered funds (mutual funds, exchange-traded funds and UCITs) that seek to provide investors with diversification benefits and downside protection.
Following the financial crisis, liquid alternative funds grew rapidly as more allocators sought to introduce sophisticated portfolio construction methodologies across portfolios. In recent years, however, growth has slowed as many early adopters expressed frustration that performance had failed to match expectations.
In retrospect, these first generation liquid alternatives often failed to deliver the promised diversification benefits, paving the way for a new generation of products.
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