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Alternative Market Briefing

Beachhead makes the case for solving major limitations of equity long/short investing

Monday, July 24, 2017

Benedicte Gravrand, Opalesque Geneva:

Alternative investment manager Beachhead Capital Management has released a new report whose title says it all: "Rethinking equity long/short allocations for retail investors: how to solve poor performance, excessive fees and blow-up risk."

The report examines the difficulty of picking winners in the space and highlights that individual funds are far riskier than most allocators realize.  It finally makes the case for replication as a less-risky alternative to investing in individual funds, supported by Beachead's very own ETF-only replication-based strategy, which has outperformed 80-90% of equity long/short funds over the past five years with much lower drawdowns.

"The equity long/short space is ready for a new generation of low cost, sector-like products that can deliver strong performance with low fees and less risk than individual funds," said managing partner Andrew Beer. "As with the broader active vs. passive debate, allocators realize that yesterday's stars are just as likely to be tomorrow's dogs.  Hence, diversified exposure to a sector is a better way to meet long term objectives and manage client expectations."

Beachhead Capital Management is an investment advisory and liquid alternatives firm based in New York with almost $600m under management.  Beachhead publishes extensive research on hedge funds, the advantages and disadvantages of ......................

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