The Next Markets for ETF Disruption? Hedge Funds, Private Equity and SMAs
Hedge funds and private equity are two large markets with huge fees and lockup periods that are ripe for disruption by ETFs, says Matt Hougan of ETFs.com at their annual Inside ETFs conference. Such markets will continue to drive growth in assets in ETFs, which currently account for only $5 trillion of the $150 trillion […]
DC Plans Slow to Adopt Liquid Alts…But Why?
A recent article on Wealth Management.com titled “Liquid Alts in DC Plans? Don’t Hold Your Breath” discusses the relatively slow adoption of Liquid Alts by defined contribution (DC) Plans relative to what Defined Benefit Plans (DB) have done. The arguments for liquid alts, as the article presents, include managing return and risk management, managing volatility, […]
How To Invest Like The Ivy League Endowments with ETFs
Seeking Alpha published an article by Prateek Mehrotra outlining how ETFs can help investors build institutional quality portfolios diversified into liquid alternative investments designed to improve long-term risk adjusted returns. The article summary The country’s largest endowments aim to preserve capital while producing income and appreciation with less correlation to the stock market regardless of […]
Rapid rise of Alternative Investments
Most alternative investment assets are held by institutional investors or by accredited, high-net-worth individuals and, according to Preqin, now total $6 trillion. Alternative investments include hedge funds, managed futures, real estate, commodities and derivatives contracts. But alternative investments aren’t just for institutions any longer. According to Morningstar alternatives investment analyst Josh Charney, $38.7 billion flowed […]
Recent Studies Highlight Rapid Use of Liquid Alternatives. Managers Set Sights on DC Plans
A recent article published by COOConnect provides hard data on the growing use of alternative investments. Our key takeaways: “The liquid alternatives industry is growing at a faster rate than traditional hedge funds as investor interest in these regulated structures shows no sign of abating. Liquid Alternatives grew 43% in 2013 to $137 billion and […]
Alternative Investments
The use of alternative investments continues to grow. According to Lipper, alternative mutual funds saw the biggest percentage growth of any fund group, with assets under management increasing 41% to $178.6 billion in 2013. A recent report by Goldman Sachs projects liquid alternatives are in the early stage of a growth trend that could produce $2 […]
Growth of Liquid Alternatives
The proliferation of liquid alternative strategies is causing many advisors to take so much time away from servicing their clients that it has become a distraction. As the saying goes, you’ll spend 90% of your time looking at alternatives, and it will make up just 10% of your portfolio. There was nearly $162 billion in […]
