Bob Rice on Multi-Strategy Funds: “A Real Monster of a Trend”

Bob Rice on Multi-Strategy Funds A Real Monster of a TrendBob Rice, general managing partner of Tangent Capital Partners, recently spoke to Mark Crumpton of Bloomberg Television and discussed the trends in the multi-strategy mutual fund space. When speaking about the recent introduction of new hedge fund type mutual fund offerings, he notes that it is “a real monster of a trend.” In the video, Rice discusses the structure of multi-strategy funds and how they mix different types of hedge fund strategies in one fund.

So just how monstrous is this trend? In 2013, there have been 18 new liquid multi-alternative funds launched according to Morningstar, all of which are mutual funds. Those 18 funds have raised $2.2 billion in assets year to date with the largest being the Blackstone Alternative Multi-Manager Fund at $1.1 billion. The category as a whole has 105 funds, of which 100 are mutual funds, 3 are exchange traded funds (ETFs), 1 is an exchange traded note (ETN), and 1 is a closed-end fund. The category in total has $34.6 billion in assets with the top 10 managers controlling roughly 53% of the assets.

To view the video, click the Read Full Story link below.

All data is as of 11/19/2012. Data source: Morningstar.

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