FYI: Alternative mutual funds pursuing hedge fund-like strategies are supposed to provide attractive risk-adjusted returns with low correlation to traditional stock and bond benchmarks. Over the past six years, as stocks have tripled off their financial-crisis lows and interest rates have remained pegged near 0%, alternative mutual funds and other “liquid alts” have underperformed the broad equity market. But their real test came after China unexpectedly devalued its yuan on August 10, leading to a rapid 11% decline in the S&P 500 Index between that date and its closing low of August 25. How did liquid alts hold up?
Regards,
Ted
http://dailyalts.com/liquid-alts-protected-portfolios-august-selloff/
