Alternative Investment Tools

摘要

As hedge funds gain wider acceptance in the wealth-management space, investment advisers struggle to determine how they fit into their clients' portfolios. And, without the appropriate tools to support retail clients' investment decisions, the confusion likely will continue. Why It's Important: Despite recent efforts by regulators to increase transparency through the SEC's hedge-fund rule, hedge funds still don't report their financials the same way a public security does. The lack of industry information on hedge funds poses problems to both investment advisers and clients who wish to understand what's happening inside a hedge-fund product and how that product compares to performance benchmarks. Without the proper technology to do complex calculations and present information to investors in a comprehensible manner, advisers will be hard-pressed to convince clients to take action on these vehicles.