Video: Brooks Ritchey of K2 Advisors Defines Liquid Alternatives

In this video, Brooks Ritchey, Senior Managing Director of K2 Advisors, explains what defines a “liquid alternative” and discusses why they’re an attractive investment. By now, most investors know that daily liquidity is the main difference between a liquid fund and a traditional hedge fund, but Mr. Ritchey also praises the ability of liquid alts to allow fund managers to bet against poorly performing companies, which he considers a particularly helpful aspect in uncertain or sideways markets.

Mr. Ritchey also discusses the importance of active management, or in the case of liquid alts, what he terms “super-active management.” Since these liquid funds show daily results, managers have the ability – and the responsibility – to make quick, daily trades, unlike traditional hedge fund managers who are looking toward end goals that are often months away.

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