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It seems that according to the WSJ the SEC is going to examine aleternative mutual funds. Some major fund houses ... when approached ... had no comment. One can read more about this through the below link.
The word "alternative" is so vague. MASNX is classified as "Multialternative". Why? Because assets split between multiple stock and bond managers.
I think this word was coined by MF industry, M*, both in cahoots so MFs can pretend they are offering "hedge funds" in "mutual fund" format. And now, SEC wants to examine these funds, because they really have nothing else to do like catch the next Madoff, or protect investors and companies against naked short selling unless it is to protect investment bankers who themselves had others do it to them during financial crisis.
Last time I checked, SEC has no legal authority to do anything. How its findings will help the individual investor one way or another is beyond me. It is a toothless and spineless organization.
Not sure what to make of this. Didn't the SEC have to approve these funds before they became available to the public? Also the term "alternative fund" is very broad based.
Why are investors flocking to alternative funds? Maybe they offer what the investors are looking for? Nobody is forcing anyone to buy. This low rate environment we have been in has changed a number of things.
Comments
I think this word was coined by MF industry, M*, both in cahoots so MFs can pretend they are offering "hedge funds" in "mutual fund" format. And now, SEC wants to examine these funds, because they really have nothing else to do like catch the next Madoff, or protect investors and companies against naked short selling unless it is to protect investment bankers who themselves had others do it to them during financial crisis.
Last time I checked, SEC has no legal authority to do anything. How its findings will help the individual investor one way or another is beyond me. It is a toothless and spineless organization.
Why are investors flocking to alternative funds? Maybe they offer what the investors are looking for? Nobody is forcing anyone to buy. This low rate environment we have been in has changed a number of things.
Maybe there is more to this story.