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Liquid Alternative Inflows Surging But Not All Funds Are Alike


Liquid alternatives are seeing huge inflows because individual investors are finally gaining access to traditionally institutional strategies, said James Dilworth, portfolio manager for the S1 Fund. Liquid alternatives have reached $150 billion in assets with over 40 new funds being launched this year. Dilworth said his S1 mutual fund has risen to over $100 million in assets and has outperformed its peers because it selects the top long/short managers who run low beta, low AUM portfolios. Finally, he said consumer discretionary, technology and real estate stocks have worked best on the long side, while his managers have worked diligently not to be squeezed on the short side.