14.11.2012 - Alternatives can help manage volatility
From 2005 through mid-2012, liquid alternatives have had cumulative total returns of 10.5%, versus returns of -0.5% for traditional hedge funds, according to “The FRC Encyclopedia of ’40 Act Alternatives”—a study from the Financial Research Corp. (FRC), a division of Strategic Insight. The study suggests a lack of familiarity is preventing advisers from adopting alternatives, although there is no clear pattern to their usage or neglect. For example, gold and precious metals were more popular than managed futures (27% use gold and metals “frequently” or “always,” versus 17% who use commodities/managed futures), despite evidence to suggest the diversification benefits of managed futures...............................................Full Article: Source
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