Video: Mutual Funds are Poaching from Hedge Funds

CNBC’s Lawrence Delevingne examines how alternative mutual funds compare to hedge funds in this video, and further describes how alternative mutual funds are “poaching” managers from hedge funds in the accompanying article.

Mr. Delevingne describes alternative mutual funds as “hedge fund strategies squeezed into a public fund structure,” and says “on paper, they’re amazing” due to their low fees, high liquidity, and much greater transparency, relative to hedge funds. There are two knocks against liquid alts, though: 1) They lack “the real rock star investment managers” who “almost always prefer to manage a hedge fund versus a mutual fund,” and 2) Not all hedge fund strategies work well within public funds.

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