In this Envestnet PMC Spotlight video, investment analyst Ken Shaw talks about the different varieties of liquid alts, and the way they work within ‘40 Act Fund structures. There are a few alternative strategies that can’t be employed by liquid alts, such as fixed income arbitrage or distressed debt, but the vast majority can be.
Mr. Shaw also talks about which investors can benefit from liquid alts. He believes that investors who are looking to keep up in a strong market will be disappointed with the slow-and-steady approach of most alternative strategies. Also, liquid alternatives can take on leverage, which carries its own set of risks. However, educated investors who decide that liquid alternatives are for them can utilize them to dampen the overall volatility of their portfolios.
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