Alternative mutual funds continue to attract inflows even though many of these funds are underperforming the market, InvestmentNews reports
Citing Morningstar data, the pub notes that alternative fund flows hit
$14.7 billion in 2010, up from $10.8 billion in 2009 and $3.4 billion in 2008.
All told, these funds managed some $87.9 billon in total AUM as of the end of May, according to Lipper data.
As for performance, the pub reports that market-neutral equity funds gained 0.4 percent and 130/30 funds gained 0.45 percent on average, while long/short funds lost 0.23 percent, compared with the average S&P 500 index fund, which gained 3.1 percent on an annualized basis for the three-year period ended June 30.
Stay ahead of the news ... Sign up for our email alerts now