Video: Arden’s Henry Davis Discusses Liquid Alts

Henry Davis, president of Arden Asset Management, was among the first to bring “hedge funds to the masses” by broadening access to retail investors. In this video with CNBC’s Andrew Ross Sorkin, Mr. Davis says liquid alts are a good thing because they provide more choice, and “more choice means more options for investors to potentially achieve their investment objectives.” Mr. Davis also points out that long-only stock and bond investing is “somewhat limited.”

Mr. Sorkin cites indexing pioneer John Bogle when asking Mr. Davis about the typically higher fees charged by liquid alts, to which Mr. Davis responds: “If you’re building a portfolio with some very low-cost products,” such as index funds, “you may be able to spend more of your fee dollars on active management.” Liquid alternatives should be viewed within the context of broader portfolio construction, not in isolation. Mr. Davis also points out that his firm has several talented managers with hedge-fund experience, in contrast to some other liquid alternative products.

Add a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.