Deals
Hedge Fund Copycats Draw Record Money as Clients Seek Safety
- Liquid alternatives raise $110 billion through October
- Total assets under management reach about $715 billion
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Funds copying hedge-fund strategies to make money are on track to record their best ever net inflows this year as investors look for ways to escape volatile markets.
These funds, known in the asset management industry as liquid alternatives, charge lower fees than hedge funds, allow investors to take out money on a daily or weekly basis, and provide better transparency on how exactly they make money. As a result, both retail investors and institutions have poured money in the funds, especially in Europe, helping them grow faster than the hedge-fund industry.