Liquid Alts

FundFire Interview with Andrew Beer: “Liquid Alts Face ‘Major Reset’ Ahead”

In this interview with Lydia Tomkiw, Andrew Beer describes the issues liquid alternatives currently face and explains how generation two liquid alternatives product offer a solution. Synopsis from FundFire Alts: Many hedge fund managers have avoided the liquid alternatives space out of fear of cannibalizing their high-fee core business, says Andrew Beer, managing partner and co-portfolio manager of dynamic beta at Beachhead Capital Management. FundFire subscribers click here to access the full video, or contact us for additional information.  

Continue Reading

Generation Two Liquid Alts – A Two Part Series in WealthManagement.com

Andrew Beer’s recent two part series in WealthManagement.com provides an insightful look at the evolution of liquid alternatives and describes in detail how the shortcomings of “Generation One” liquid alternatives have paved the way for “Generation Two” products to deliver on the promise of their predecessor.   Part I:  Generation One Liquid Alts: Three Problems Part II: Generation Two Liquid Alts: Replication-Based Strategies

Continue Reading

Pensions & Investments: Liquid alternatives – 2.0

Included below is Andrew Beer’s most recent article in P&I, which was featured in the Industry Voices section: Liquid alternatives – 2.0 Excerpt: Liquid alternatives are broadly defined as strategies that are available in registered funds (mutual funds, exchange-traded funds and UCITs) that seek to provide investors with diversification benefits and downside protection. Following the financial crisis, liquid alternative funds grew rapidly as more allocators sought to introduce sophisticated portfolio construction methodologies across portfolios. In recent years, however, growth has slowed as many early adopters expressed frustration that performance had failed to match expectations. In retrospect, these first generation liquid …

Continue Reading

‘Liquid Alts’ Needs to Go: Managers

Ignites article by Grace Jennings-Edquist with quote from Andrew Beer Liquid alternatives may be ripe for rebranding. Excerpt: The once-hyped product type has become associated with high fees and vague definitions, and avoiding the phrase “liquid alts” altogether might be the best option to help resuscitate sales, according to asset managers who have taken issue with the moniker. …New York–based Goldman Sachs Asset Management recently suggested recategorizing liquid alternatives into groups that align with hedge fund classifications. Those five categories are equity long/short, event-driven, relative value, multi-strategy and tactical trading/macro, the firm stated in a report on the topic. That …

Continue Reading

Beachhead Capital Makes the Case for “Generation Two” Liquid Alternatives

PRESS RELEASE (New York, 6 April 2017) – Beachhead Capital Management (“Beachhead”), an innovative alternative investment manager, announced the release of a new report:  Generation Two Liquid Alternatives:  Built to Meet the Needs of Asset Allocators. This timely report addresses two key questions for investors today:  why were many investors disappointed with the first generation of liquid alternative mutual funds, and what better solutions are available going forward? Liquid alternative products created in the wake of the financial crisis (“Generation One”) often had three issues:  poor performance, high fees and/or highly unpredictable performance.  With short track records, the funds too …

Continue Reading

Liquid Alternatives: What Happened and What Comes Next?

Earlier today, Andrew Beer moderated a panel discussion on liquid alternatives with Jerry Pascucci, Managing Director, Head of Alternative Investments at UBS and Robert Martorana, Director of Research at Dover Financial Research.  This NetMeeting, “Liquid Alternatives: What Happened and What Comes Next?” was offered exclusively to members of Money Management Institute.  If you would like to receive any of the highlights or key takeaways, please contact us by phone or via the link on our website.

Continue Reading

A Hedge Fund Manager’s View on Liquid Alternatives

Included below is an excerpt of Andrew Beer’s article in WealthManagement.com: There’s something amiss in the liquid alts space. After years of stellar growth, adoption of liquid alternatives at wirehouses ground to a halt last year, according to a recent study by the Money Management Institute and Dover Financial Research called Distribution of Alternative Investments through Wirehouses (2016). Consequently, despite growing risks in 60/40 portfolios, most retail investors are significantly underinvested relative to target allocations. On top of this, some big players that were early adopters of liquid alternatives are rethinking that move strategically. “Generation one” of liquid alts had …

Continue Reading

Why a ‘Replication’ Strategy Trumps Liquid Alt Funds

Catch Andrew Beer interviewed on TheStreet. The liquid alternatives movement is trying to bring hedge fund strategies to ordinary investors. Unfortunately, performance has been subpar for the majority of liquid alternative funds and the fees are still relatively high compared to the average mutual fund. Andrew Beer, managing partner at Beachhead Capital Management, said a ‘replication strategy’ is the better option. ‘The idea is simple: figure out how hedge funds are invested, and copy it,’ said Beer, who also refers to his replication strategy as ‘Dynamic Beta’. Beer said even for sophisticated investors, it is difficult to figure out exactly …

Continue Reading

Chasing Fund Returns is a Very, Very Bad Idea

How does a fund earn over $500 million in management fees yet lose over $1 billion for investors since inception? No, sorry.  It’s not a hedge fund.  It’s a mutual fund:  the Marketfield Fund, arguably the poster child for returns chasing in the liquid alts space. Here’s the background. The Marketfield Fund was launched in July 2007 and outperformed the S&P 500 by a cumulative 34.5% during the crisis. As one of a handful of long/short mutual funds, it stood to benefit from the rise of liquid alts in the years following the crisis. From mid-2008 through the end of …

Continue Reading

Smart Money Insights: Weekly Brief Apr 11

The start of the second quarter saw equity markets decline – continuing a pattern, the S&P fared better than pretty much any other index.  The whipsaws in the market this year are taking a big toll on active investors.  In March, the average large cap fund underperformed the S&P by almost 800 basis points on an annualized basis – a record going back to 1998 – and less than 20% outperformed the index – also a record low.  In some areas, like growth funds, the numbers were far worse.  Hedge funds continue to have problems with crowded trades, and technical …

Continue Reading