(Daily Alts) Are Hedge Funds Superior to Liquid Alts?Alternative mutual funds have several advantages over hedge funds that employ the same strategies: They’re more liquid, they’re more transparent, and they have lower fees. For retail investors that fall short of the “accredited” threshold ($200,000 in annual income or $1 million in liquid assets), alternative mutual funds and ETFs may represent their only opportunity for accessing alternative strategies, since non-accredited investors are prohibited from investing in hedge funds.
Do these advantages enjoyed by liquid alternatives leave any room at all for hedge funds? Steben & Company answers that question with a resounding “Yes!” in its May 2016 Alternative Perspectives white paper: Do Hedge Funds Have An Edge Over Alternative Mutual Funds? The Case of Equity Long/Short Strategies.
