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Alternative Market Briefing

First Trust Advisors launches liquid alternatives platform

Tuesday, April 08, 2014

Bailey McCann, Opalesque New York:

First Trust Advisors is launching a new liquid alternatives platform aimed at building on the companies existing alternative ETFs offering by adding hedged mutual funds. Senior Portfolio Managers Rob Guttschow and John Gambla recently sat down in an Opalesque TV interview to discuss their approach and what they hope to do with the platform.

"Historically hedge funds haven't been available to all types of investors. But with the use of technology, and evolutions in portfolio theory we can offer some of the same strategies within the '40 Act structure, and bring those strategies to retail investors, and investors that seek greater liquidity," Gambla explains.

In addition to the liquid alternatives platform and product offerings First Trust Advisors has over 75 ETF products available including a recently launched long only commodities product and a managed futures product. Both men note that investors of all stripes are shifting away from the traditional 60/40 stocks and bonds portfolio mix and into something more diversified. The point to the endowment model which more closely resembles a 50/30/20 mix of stocks, bonds and alternatives as a portfolio construction gaining more widespread popularity.

"The reality is retail investors were unhappy with the 60/40 mix so advisors are looking for uncorrelated investments. We'......................

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