AlphaSimplex Group (ASG) CEO Duncan Wilkinson explains that liquid alternatives are about “good, risk-adjusted returns; not necessarily big, absolute returns” in this video from TheStreet.com. In particular, Mr. Wilkinson talks about ASG’s Tactical US Fund, which he describes as an “aggressive long/short equity fund.”
When risk is high, it’s usually not a good time to be an equity investor, according to Wilkinson. With that in mind, the Tactical US Fund scales back equity exposure during periods of high volatility, and ramps up equity exposure when volatility is low. Managed futures strategies are also discussed. Mr. Wilkinson explains that managed futures have provided the opportunity to profit from the rapid decline in the price of oil, while most equity investors have been unable to capitalize.