The popularity of liquid alternatives strategies blossomed in recent years, and with it, the number of investment vehicles claiming to be part of the asset class. But not all liquid alternatives are true hedge fund proxies, and misconceptions exist about strategy classification.
It’s no secret that energy and materials companies largely struggled throughout 2015. In fact, they were the worst performing sectors of the year. Weak fundamentals were driven by slowing demand, especially out of China, and oversupply as U.S. domestic crude oil production has nearly doubled during the last several years.