Heading into 2021, advisors face numerous headwinds: a potential return of inflation, sky high equity prices, possible negative returns on bonds. Yet advisors with retail clients have few good options to protect against these risks, and many that embraced alternative mutual funds and ETFs have been disappointed with low returns, high fees and large drawdowns.
The questions advisors are asking today is:
How can retail investors gain exposure to leading hedge funds yet with the client-friendly features of an ETF? Given the difficulties for many hedge funds in the 2010s, will hedge funds will return to the Golden Age of the 2000s, when they generated alpha through two bear markets?