Liquid Alternatives: A Primer
The key to successful long-term investing is managing risk. Liquid alternatives are a meaningful tool for the investor to access a hedge fund’s return profile. Accessibility to hedge funds is a paramount concern for investors, particularly in an environment of low interest rates and highly correlated equity markets. The investment process is long, arduous, and requires experienced professionals using sophisticated analytical tools to ensure value to the portfolio. Liquid alternatives overcome these barriers for the investor.
The key benefits of liquid alternative investments include:
• Diversification delivers Portfolio Efficiency – varying strategies provide diversification to alternate return factors that enable a more efficient portfolio.
• Lower Costs meet a Fiduciary Standard – Reduced management fees better aligns the investment with the investor.
• Liquidity empowers Accessibility – reduced manager search costs and daily liquidity that improves accessibility.
• Transparency augments Risk Management – The ability to assess the underlying positions empowers robust risk management for the investor, which turns insight into action.
The practicality of liquid alternatives enables a timelier transition into a hedge fund while improving that allocation's liquidity. Liquid alternatives invest without compromise.