The Wrapper Matters: Comparing Liquid Alternatives and Hedge Funds
Overview
The strategies available through liquid alternatives and hedge funds can deliver valuable portfolio construction benefits for certain types of investors, with suitability depending on investor-specific objectives, preferences, and constraints. Liquid alternatives are public and private vehicles that investors use to access a variety of alternative investment strategies. In comparing and contrasting them, major hedge fund categories were mapped to liquid alternative categories, noting important differences between their structures.