Strike a Pose.
The Blackstone Alternative Multi-Manager
fund, now provided on Fidelity's
] Portfolio Advisory Services platform, has seen $1 billion, Kapadia writes, and retail investors put $54 billion into mutual funds using hedge fund equity strategies. Firms are hopping on the new demand, launching 25 new funds this year. Last year the number of launches totaled 55, Kapadia reports.
Hedge funds, however, are still reeling, with investors taking out $45 billion from equity and multi-asset hedge funds, as flows have been slow since the financial crisis, when investors took $750 billion out of those funds.
Not only have retail investors been putting money into alternative mutual funds, perceived as safer in a "mutual fund wrapper," but wealthier clients have begun putting more money into alternatives.
Kapadia interviewed Philip Guziec
, Morningstar's alternative investment strategist, who explained to her that the funds may attract HNW investors because the investments are more restricted, have more regulatory oversight and don't "lock up" their money. It doesn't hurt that the investments are cheap!
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