The Strengths and Weaknesses of Liquid Alternatives
As discussed in Chapter 1, Investment Company Act of 1940 (’40 Act) alternative vehicles, or liquid alternatives, are a hybrid vehicle that grew out of the growth and development of, initially, the mutual fund industry and, eventually, the hedge fund industry. Chapter 1 also indicated that the growth and market impact of hedge funds were relatively small in the early 1990s, but they accelerated over the 1997–2003 period. Very few market participants really understood hedge funds in their early years, and there was a need to educate the investing public.
What is a Hedge Fund?
The U.S. Securities ...