Hedge-Fund Copycats Rally as Academics Defend Embattled Strategy
- Liquid alternatives rebound in global market roller coaster
- Study finds the strategies can replicate fast-money returns
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Investing products designed to bring hedge-fund strategies to the masses are on course for one of their best months in more than a decade, as the latest research argues the oft-maligned trades have robust foundations.
So-called liquid alternatives mimic the fast money through short selling, leverage and derivatives in order to capture popular sources of market returns known as risk premia. Yet they have underperformed both hedge funds and 60/40 portfolios over the past decade -- and look set to do so again this year.