The post-crisis alternatives boom: Investors warned to 'approach with caution'

To buy or not to buy?

Despite the popularity of hedge funds and other alternative strategies reaching an all-time high among fund buyers, concerns persist about their performance and appropriateness for retail client portfolios.

In the years since the Global Financial Crisis, total assets in the global hedge fund industry have more than doubled from $1.4trn in 2008 to $3.2trn in 2017, according to the most recent data available from Hedge Fund Research. Over the same period, total assets in alternative mutual funds and ETFs grew from $136bn to $913bn, according to Morningstar. Alternatives market to grow by $2.5trn in next three years Brooks Ritchey, senior managing director and head of portfolio construction at Franklin Templeton affiliate K2 Advisors, explained demand has been driven by lower yields and,...