Liquid Alternatives, the new Eldorado for active managers?

on Jun 14, 2014 in Derivative, Fixed Income, Home, Portfolio ad hoc | 2,133 comments

Share On GoogleShare On FacebookShare On Twitter

Thanks to the unconventional measures of central banks and the march of index investing strategies, we are in fact seeing the rise of a new, more aggressive version of active management.

Investment managers are launching investment products that give them more flexibility to roam around financial markets in search of alpha. The question is whether end investors will ultimately benefit from this phenomenon.
So, what are exactly Liquid Alternatives? Liquid Alternatives are complex and opaque investment wrappers that require a bit of caution. They are packaged into a fund, covering a wide-ranging category of assets, while using a hedge fund strategy. Unlike most traditional funds, they can go short, use leverage and derivatives.

The rise of Liquid Alternatives opens up a vast new market and come at a convenient time for asset managers. Now with bonds looking fairly expensive and equities unstably climbing higher, asset managers are looking for an alternative that could hold its value in dangerous waters. This is where Liquid Alternatives come into play.

The risk is that unconstrained funds are not being pitched correctly. They are marketed as uncorrelated assets that increase diversification or act as insurance protection.

Faced with a universe of styles and possible strategies, investors ought to be doing their due diligence in a similar fashion as a hedge fund.

Consider for instance, fixed income where, after three decades of declining interest rates, the normalization of monetary policy may be a headwind for returns for the coming years. In this respect, PIMCO is pursuing a push for so-called unconstrained bond funds. In practice, the funds are sold as a conservative choice, a prudent alternative to a core bond fund that might no longer be able to preserve capital.
It consists of placing bets across a wider spectrum of the fixed income market, such as emerging markets, junk debt, credit derivatives, and taking bets on the direction of interest rates.

Retail investors are only catching up with what is happening among institutional investors. This process will lead to more volatility in markets, and be consequently ready to tighten the seat belt.
Their record is not long enough to know whether they could get credit for diversification benefits. Don’t forget to do your homework before investing.

2,133 Comments

  1. I’m still learning from you, as I’m trying to reach my goals. I definitely liked reading all that is posted on your blog.Keep the stories coming. I enjoyed it!

  2. We are a group of volunteers and opening a new scheme in our community. Your site offered us with valuable information to work on. You have done an impressive job and our whole community will be thankful to you.

  3. home page

    10 July 2017

    Post a Reply

    Good day I am so happy I found your site, I really found you by mistake, while I was browsing on Aol for something else, Anyhow I am here now and would just like to say thank you for a tremendous post and a all round exciting blog (I also love the theme/design), I don’t have time to read it all at the moment but I have saved it and also added your RSS feeds, so when I have time I will be back to read much more, Please do keep up the great work.

  4. click here

    10 July 2017

    Post a Reply

    Truly no matter if someone doesn’t be aware of after that its up to other viewers that they will assist, so here it takes place.

  5. my blog

    10 July 2017

    Post a Reply

    You actually make it seem really easy along with your presentation but I find this topic to be actually one thing that I feel I would by no means understand. It kind of feels too complex and extremely large for me. I am taking a look ahead for your subsequent submit, I’ll attempt to get the grasp of it!

  6. home page

    12 July 2017

    Post a Reply

    Ahaa, its pleasant dialogue about this piece of writing at this place at this blog, I have read all that, so now me also commenting at this place.

  7. click here

    12 July 2017

    Post a Reply

    I’m more than happy to discover this web site. I need to to thank you for ones time just for this wonderful read!! I definitely liked every little bit of it and I have you book-marked to check out new stuff in your site.

  8. my blog

    13 July 2017

    Post a Reply

    I’m extremely impressed with your writing skills as well as with the layout on your weblog. Is this a paid theme or did you customize it yourself? Anyway keep up the excellent quality writing, it’s rare to see a nice blog like this one nowadays.

  9. home page

    13 July 2017

    Post a Reply

    Wonderful beat ! I would like to apprentice while you amend your web site, how can i subscribe for a blog site? The account helped me a acceptable deal. I had been a little bit acquainted of this your broadcast offered bright clear concept

  10. home page

    14 July 2017

    Post a Reply

    obviously like your web site however you need to test the spelling on several of your posts. Many of them are rife with spelling issues and I find it very bothersome to inform the truth however I’ll definitely come again again.

  11. my blog

    14 July 2017

    Post a Reply

    I always used to read post in news papers but now as I am a user of internet thus from now I am using net for articles or reviews, thanks to web.

  12. click here

    14 July 2017

    Post a Reply

    I’m not sure where you’re getting your info, but great topic. I needs to spend some time learning much more or understanding more. Thanks for great info I was looking for this info for my mission.

  13. Every weekend i used to pay a quick visit this website, because i wish for enjoyment, as this this web site conations actually pleasant funny data too.

  14. home page

    15 July 2017

    Post a Reply

    I used to be suggested this website by way of my cousin. I am now not positive whether this put up is written by way of him as nobody else know such distinctive approximately my problem. You are amazing! Thank you!

  15. home page

    15 July 2017

    Post a Reply

    Hiya very cool site!! Man .. Excellent .. Wonderful .. I’ll bookmark your blog and take the feeds additionally? I’m happy to find so many useful information right here within the post, we’d like work out more techniques in this regard, thanks for sharing. . . . . .

  16. click here

    15 July 2017

    Post a Reply

    naturally like your website but you have to test the spelling on several of your posts. A number of them are rife with spelling issues and I to find it very bothersome to tell the truth however I will certainly come back again.

  17. my blog

    17 July 2017

    Post a Reply

    Simply desire to say your article is as amazing. The clearness in your publish is simply nice and that i can assume you are an expert in this subject. Fine along with your permission let me to clutch your feed to stay up to date with coming near near post. Thank you 1,000,000 and please continue the rewarding work.

  18. my blog

    17 July 2017

    Post a Reply

    As the admin of this site is working, no question very soon it will be well-known, due to its quality contents.

  19. click here

    17 July 2017

    Post a Reply

    Thanks for any other wonderful post. The place else could anyone get that kind of information in such an ideal means of writing? I’ve a presentation next week, and I’m at the search for such info.

  20. myblog

    18 July 2017

    Post a Reply

    Everything is very open with a really clear description of the challenges. It was truly informative. Your site is useful. Thank you for sharing!

  21. My spouse and I stumbled over here different page and thought I should check things out. I like what I see so i am just following you. Look forward to exploring your web page for a second time.

  22. It’s the best time to make a few plans for the future and it is time to be happy. I have read this submit and if I may just I wish to recommend you some attention-grabbing things or tips. Perhaps you could write subsequent articles relating to this article. I want to read more issues approximately it!

  23. click here

    20 July 2017

    Post a Reply

    I’ll right away clutch your rss as I can’t to find your e-mail subscription hyperlink or newsletter service. Do you’ve any? Kindly let me recognise in order that I could subscribe. Thanks.

  24. fifa 18

    20 July 2017

    Post a Reply

    Excellent post! We will be linking to this particularly great article on our website. Keep up the good writing.

  25. My brother recommended I might like this web site. He was totally right. This post actually made my day. You can not imagine just how much time I had spent for this info! Thanks!

  26. click here

    20 July 2017

    Post a Reply

    Hi, i think that i saw you visited my blog so i came to return the prefer?.I am attempting to in finding issues to improve my web site!I suppose its good enough to make use of some of your ideas!!

  27. I think the admin of this web page is truly working hard in support of his website, since here every material is quality based material.

  28. website

    21 July 2017

    Post a Reply

    An interesting discussion is worth comment. I do think that you ought to write more on this topic, it may not be a taboo matter but typically people do not talk about such subjects. To the next! Many thanks!!

  29. Michaelflout

    23 July 2017

    Post a Reply

    can you buy viagra in pharmacies

    get viagra in mexico
    [url=http://viagrahto.com/index.html#][/url]
    how to buy viagra online ehow

  30. mink lashes

    24 July 2017

    Post a Reply

    I was suggested this web site by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my difficulty. You are amazing! Thanks!

  31. homepage

    24 July 2017

    Post a Reply

    I will immediately grab your rss as I can’t to find your e-mail subscription hyperlink or e-newsletter service. Do you’ve any? Please allow me understand in order that I could subscribe. Thanks.

  32. click here

    24 July 2017

    Post a Reply

    Good site you have here.. It’s hard to find good quality writing like yours these days. I really appreciate individuals like you! Take care!!

  33. click here

    25 July 2017

    Post a Reply

    Hmm it seems like your website ate my first comment (it was super long) so I guess I’ll just sum it up what I wrote and say, I’m thoroughly enjoying your blog. I too am an aspiring blog blogger but I’m still new to everything. Do you have any points for newbie blog writers? I’d certainly appreciate it.

  34. home page

    25 July 2017

    Post a Reply

    Hmm it appears like your website ate my first comment (it was super long) so I guess I’ll just sum it up what I had written and say, I’m thoroughly enjoying your blog. I too am an aspiring blog blogger but I’m still new to everything. Do you have any tips and hints for newbie blog writers? I’d genuinely appreciate it.

  35. Stephenkip

    25 July 2017

    Post a Reply

    keyword order viagra
    [url=http://buyviagraestonline.com/]viagra generic date
    [/url]
    viagra
    generic low price viagra

  36. Stephenkip

    25 July 2017

    Post a Reply

    viagra embarrasing stories
    [url=http://buyviagraestonline.com/]viagra online[/url]
    web

    viagra cheap price

  37. StanleyNub

    25 July 2017

    Post a Reply

    cheapest viagra online plus zenegra
    [url=http://buyviagraestonline.com/]online viagra[/url]
    online viagra
    printable free viagra certificate

  38. Jamesarili

    26 July 2017

    Post a Reply

    herbal viagra formulations
    [url=http://buyviagraestonline.com/]buy viagra online[/url]
    JasonTax
    sex without viagra

  39. StanleyNub

    26 July 2017

    Post a Reply

    viagra aanbieding
    [url=http://buyviagraestonline.com/]buy viagra online[/url]
    hp

    viagra oral gel

  40. Jamesarili

    26 July 2017

    Post a Reply

    viagra as altitude medicine
    [url=http://buyviagraestonline.com/]buy viagra online[/url]
    generic viagra
    cheap online pharmacy viagra viagra

  41. Stephenkip

    26 July 2017

    Post a Reply

    viagra comercial ringtone
    [url=http://buyviagraestonline.com/]generic viagra[/url]
    viagra
    viagra headache

  42. StanleyNub

    26 July 2017

    Post a Reply

    cialis levitra sale viagra
    [url=http://buyviagraestonline.com/]bekijk webpagina
    [/url]
    viagra
    viagra for ladies

  43. home page

    26 July 2017

    Post a Reply

    Nice post. I learn something new and challenging on websites I stumbleupon on a daily basis. It’s always exciting to read through content from other writers and practice something from their websites.

  44. Whoa! This blog looks just like my old one! It’s on a totally different topic but it has pretty much the same layout and design. Great choice of colors!

  45. I have been browsing online more than 3 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. Personally, if all site owners and bloggers made good content as you did, the web will be much more useful than ever before.

  46. click here

    26 July 2017

    Post a Reply

    I’m not sure exactly why but this web site is loading incredibly slow for me. Is anyone else having this problem or is it a problem on my end? I’ll check back later on and see if the problem still exists.

  47. StanleyNub

    26 July 2017

    Post a Reply

    viagra medication prescription levitra cialis propecia
    [url=http://buyviagraestonline.com/]cheap viagra[/url]
    cheap viagra
    canadian viagra costs

  48. StanleyNub

    26 July 2017

    Post a Reply

    viagra and erection
    [url=http://buyviagraestonline.com/]generic viagra[/url]
    viagra
    sublingual viagra

  49. Someone essentially lend a hand to make critically articles I’d state.This is the first time I frequented your website page and up to now? I amazed with the research you made to make this particular publish incredible.Wonderful activity! เช็ค ems

  50. Looking for Replacement Windows? Don’t Miss the Huge Sale. Hurry! [url=http://adobebuy.us/product/adobe-acrobat-xi-pro/]Adobe Acrobat Pro[/url]

  51. Award-Winning Business Accounting Software. Download our Brochure! [url=http://adobebuy.us/product/adobe-creative-suite-6-master-collection-student-and-teacher-edition/]Adobe Creative[/url]

  52. Hey there would you mind sharing which blog platform you’re working with? I’m looking to start my own blog in the near future but I’m having a hard time selecting between BlogEngine/Wordpress/B2evolution and Drupal.The reason I ask is because your design and style seems different then most blogs and I’m looking for something unique. P.S Sorry for getting off-topic but I had to ask! เช็คของไปรษณีย์