Retail alternatives investments are on the march, and U.S. News and World Report
is taking notice.
Though the hedge fund has gained a reputation for being risky and designed for the wealthy, not all hedge funds fit this description, The Smarter Investor
's Simeon Hyman writes. Bloomberg reports that more than 50 funds, such as mutual funds and ETFs that follow hedge fund-like strategies and ask for lower fees, are better designed for retail investors.
The industry is changing, allowing for people who don't qualify as a qualified purchaser under SEC guidelines to invest in similar funds. These funds also have some key advantages: daily liquidity, transparency and lower fees.
In practice some can behave a lot like regular stock funds that follow long-only strategies. So adding a fund following a long/short stock strategy to your portfolio is similar to adding any actively managed stock mutual fund seeking to outperform a benchmark. Other hedge funds trade in and out of a broad range of investments like commodities, currencies, stocks and bonds. Those funds can potentially deliver uncorrelated returns…
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