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Preqin: Alternative mutual funds outperform hedge funds in 2014

First Published 23rd April 2015

The average alternative mutual fund delivered returns of 4.36% over the course of 2014, compared to 3.78% for single-manager hedge funds. These funds have a lower minimum investment than single-manager funds, $190,000 and $1.3mn respectively, as well as lower management fees on average (1.04% compared with 1.55%).

The rise of liquid alternative products, such as UCITS and alternative mutual funds, have opened up the possibility of hedge fund investment for more than just the largest investors. These regulated products, with lower investment minimums and fees, have proved attractive to retail clients, and institutional investors and funds of hedge funds have shown an increasing interest in these products. In this section, we examine the current universe of hedge funds structured under the UCITS and '40 act regimes, taking a closer look at the barriers to entry and the investors in these funds.

View the full report here: Liquid Alternatives: Investor and Fund Manager Outlook April 2015