SEC to investigate alternative mutual funds


The SEC has launched an investigation into examining alternative mutual funds, following their recent surge in popularity.

The funds in question typically employ investment strategies that imitate those of hedge funds, such as investing in private debt or shorting assets, and command higher fees.

Investigations will be conducted at large investment firms such as BlackRock (NYSE:BLK) and AQR Capital Management, as well as smaller firms that previously didn't offer mutual funds.

Related tickers: GS, BK

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Comments (4)
  • stoj
    , contributor
    Comments (767) | Send Message
     
    hedge funds saw inflows last 2 months, cause lots of ppl speculate that s&p topped, investigate the investors brains instead, as they can't have it both ways. You can not hedge, and at the same time complain that hedging costs money or is risky
    13 Aug 2014, 04:28 AM Reply Like
  • hayekvonfriedman
    , contributor
    Comments (1003) | Send Message
     
    For me alternatives are risk diversifiers rather than return enhancers. The truth is their relative performance has not fared well of late. To reiterate I do not buy them to outperform a particular index.

     

    I look for non-correlated funds that have the potential to provide absolute returns particular in volatile periods and tail events such as 2008. Low information investors getting in the deep end of the pool drive this nanny state big brother behavior.
    13 Aug 2014, 09:27 PM Reply Like
  • deercreekvols
    , contributor
    Comments (9489) | Send Message
     
    Link to WSJ required that one pay a fee to WSJ or be a member to read the story...not exactly the best link SA can provide IMO...
    13 Aug 2014, 03:50 PM Reply Like
  • swaps
    , contributor
    Comments (1573) | Send Message
     
    This is the same SEC that canceled the uptick rule just before economic collapse?

     

    The same SEC that declined to investigate complaints about Madoff and Co.?

     

    What powerful forces have pulled their strings?
    13 Aug 2014, 05:50 PM Reply Like
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