MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
|
|
MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Tuesday, August 20, 2013 Alts Ain't All They're Cracked Up To Be It pays to remember sometimes that "alternatives" is just another way to say "miscellaneous." Reuters' Tim McLaughlin wrote a column on alternative strategy mutual funds an their growing popularity with retail investors, citing Fidelity's [profile] partnership with Blackstone to offer the Blackstone Multi-Manager Fund. The funds are meant to give investors some diversification without all of the risks one would encounter in a pure hedge fund, McLaughlin writes, but not everything is peachy keen with alternative strategy mutual funds. McLaughlin quotes a Morningstar research note written by Nadia Papiagiannis, saying on alt mutual funds, "There are problems with most of them." McLaughlin cites Papagiannis' argument that these funds are usually overpriced, have a lot of subadviser overlap, and invest in little-known managers. McLaughlin doesn't knock these funds entirely, adding that the Arden Alternative Strategies Fund lost 2.6 percent, which is better than the 5.5 percent loss incurred by the S&P 500 Index, rowing the low correlation with stocks can "come in handy." To read more, click here. Printed from: MFWire.com/story.asp?s=45616 Copyright 2013, InvestmentWires, Inc. All Rights Reserved |