Liquid Alts – a category too broad?
In recent conversations, clients are referring to liquid alts more than ever. The term is mentioned so casually yet includes many, differing strategies. An article in today’s Wall Street Journal (link; subscription required) reminded me of how different these strategies can be. The article mentions the numerous strategies covered by alternatives and how vastly different performance and uptake has been. The article made me think of fixed income as a fitting corollary. Whether meeting with a Marketer at an asset manager or interviewing an FA, rarely does someone refer to “fixed income.” Much more often we discuss “unconstrained,” “short duration,” or “emerging market corporate.”
As the category matures, I’m betting we’ll hear folks discuss “managed futures” or “broad equity market neutral” alts more often.