FYI: The gravitational forces that drive the rest of the mutual fund market—toward lower fees, more transparency, and better investor outcomes— seem not to apply to the alternatives part of the fund world. Despite much innovation and the emergence of credible new players, the alternative space looks more like the fund world of yore than the investor-focused fund world of today. In short, while the fund market as a whole has become a place driven by the demands of buyers, the alternatives space remains a seller’s market.
Regards,
Ted
http://news.morningstar.com/articlenet/article.aspx?id=846276
Comments
I see "most" alternative funds as a marketing gimmick myself, but it will be interesting to see, if this pullback persists, how the majority of these funds react. But in the end, over time, will they beat a typical equity/bond balanced fund. I have my doubts.